neoaccounting

Courtesy of GASB The Financial Accounting Standards Board released an  accounting standards update Wednesday to improve the financial reporting for share-based payments from companies to people who aren’t employees, such as suppliers and service providers. The standards update expands the scope of  Topic 718, Compensation—Stock Compensation , which now covers only share-based payments to employees, to also include share-based payments that have been issued to nonemployees for goods or services. That way, the accounting for share-based payments to nonemployees and employees will be substantially aligned, in accordance with FASB’s Simplification Initiative. It supersedes  Subtopic 505-50, Equity—Equity-Based Payments to Non-Employees . “Stakeholders recommended that the FASB improve the accounting for nonemployee share-based payments to reduce cost and complexity to apply the guidance, while improving the financial reporting for these transactions,” s...