Staff position: cash settlements on contingent events.FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). has issued new guidance addressing the classification of options and similar instruments issued as employee compensation that allow for cash settlement upon the occurrence of a contingent Fortuitous; dependent upon the possible occurrence of a future event, the existence of which is not assured. The word contingent denotes that there is no present interest or right but only a conditional one which will become effective upon the happening of the event, amending paragraphs 32 and A229 of FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting No. 123, Share-Based Payment. For more on Staff Position FAS 123(R)-4, Classification of Options and Similar Instruments Issued as Employee Compensation That Allow for Cash Settlement upon the Occurrence of a Contingent Event, visit www.fasb.org/fasb_staff_positions/fsp_fas123r-4.pdf. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion