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Frederic W. Cook & Co., Inc. Comment Letter to Financial Accounting Standards Board on FASB Draft: Share-Based Payment (PDF)

3 pages. Excerpt: If the FASB is to impose an earnings charge on financial statements for the value of employee stock options at grant, it is important that the method chosen for measuring that value be fair and reasonable, reflect real economic values and costs, and be comparable across various industry sectors. It is unclear whether the proposed models, which were developed for transferable options and warrants with relatively short terms, meet these criteria.

FAQ on Statement of Financial Accounting Standards No. 123 (Revised 2004) on Share-Based Payment (PDF)

27 pages. Excerpt: This document was prepared to respond to questions related to the Board's decisions on accounting for share-based payment transactions as presented in the Statement referenced above. Following the Frequently Asked Questions is a summary description of the Statement's provisions. This material is presented for discussion purposes only.

GAO Testimony: Financial Accounting Standards for Stock Options and Other Share-Based Payments

8 pages. "GAO discussed its perspective on the process for establishing accounting standards for private-sector entities and then, more specifically, the current proposals for accounting for stock options. We recognize that accounting for stock options is a complex and controversial issue on which reasonable people can and do disagree. As a result, in light of the Financial Accounting Standards Board's (FASB) current proposed standard for accounting for stock options and other share-based compensation, there has been a renewed interest for the Congress to possibly legislate accounting rules for stock options." [GAO-04-962T, published Jul. 8, 2004, released Jul. 8, 2004]

FASB Accounting Standards Codification to Officially Launch on July 1, 2009

Excerpt: The Financial Accounting Standards Board (FASB) [on Wednesday June 3] voted to approve the FASB Accounting Standards Codification(tm) as the single source of authoritative nongovernmental U.S. Generally Accepted Accounting Principles (GAAP) to be launched on July 1, 2009. The Codification will be effective for interim and annual periods ending after September 15, 2009, which means that preparers must begin to use the Codification for periods that begin on or about July 1, 2009.

Text of Revised Statement of Financial Accounting Standards No. 123: Share-Based Payment (PDF)

Excerpt: Over the last few years, approximately 750 public companies have voluntarily adopted or announced their intention to adopt Statement 123's fair-value-based method of accounting for share-based payment transactions with employees. Other companies continue to use Opinion 25's intrinsic value method.... By requiring the fair-value-based method for all public entities, this Statement eliminates an alternative accounting method ...

Text of FASB Accounting Standards Update 2017-07 (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (PDF)

58 pages. "The Board is issuing this Update primarily to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost... Topic 715, Compensation -- Retirement Benefits, does not prescribe where the amount of net benefit cost should be presented in an employer's income statement and does not require entities to disclose by line item the amount of net benefit cost that is included in the income statement or capitalized in assets.... To improve the reporting of net benefit cost in the financial statements, the Board added a standard-setting project to provide additional guidance on the presentation of net benefit cost in the income statement and on the components eligible for capitalization in assets."

FASB Launches New Accounting Standards Codification All Preexisting Non-SEC Accounting Standards Are Superseded (PDF)

2 pages. Excerpt: The purpose of this letter is to alert compensation professionals to a significant development in the reorganization of U.S. generally accepted accounting principles (GAAP). Beginning with interim and annual periods ending after September 15, 2009, all financial statements will make reference to the Financial Accounting Standards Board's (FASB) new Accounting Standards Codification (ASC or Codification) rather than previously existing accounting standards such as FASB Statement No. 123R. The reorganization does not create new accounting standards or guidance, but the structure of the Codification is significantly different than that of previous accounting standards. This letter provides a brief overview of the Codification and identifies citations that are relevant to executive compensation.

FASB's New Accounting Standards Codification: All Preexisting Non-SEC Accounting Standards Are Superseded (PDF)

Excerpt: The purpose of this letter is to alert compensation professionals to a significant development in the reorganization of U.S. generally accepted accounting principles (GAAP). Beginning with interim and annual periods ending after September 15, 2009, all financial statements will make reference to the Financial Accounting Standards Board's (FASB) new Accounting Standards Codification (ASC or Codification) rather than previously existing accounting standards such as FASB Statement No. 123R. The reorganization does not create new accountingstandards or guidance, but the structure of the Codification is significantly different than that of previous accounting standards. This letter provides a brief overview of the Codification and identifies citations that are relevant to executive compensation.

Text of FASB Proposed Accounting Standards Update to Topic 718: Stock Compensation -- Scope of Modification Accounting

24 pages. "The Board is issuing this proposed Update to provide clarity and reduce diversity in practice, as well as to reduce cost and complexity, when applying the guidance in Topic 718, Compensation: Stock Compensation, about a change to the terms or conditions of a share-based payment award.... The amendments in this proposed Update would affect any entity that changes the terms or conditions of a share-based payment award."

Text of FASB Accounting Standards Update 2024-01: Compensation -- Stock Compensation (Topic 718) (PDF)

28 pages. "The FASB is issuing the amendments in this Update to improve generally accepted accounting principles (GAAP) by adding an illustrative example to demonstrate how an entity should apply the scope guidance in paragraph 718-10-15-3 to determine whether profits interest and similar awards should be accounted for in accordance with Topic 718, Compensation -- Stock Compensation."