The FASB Simplifies the Accounting for Share-Based Payments

摘要

In this article, the authors explain the FASB's recently issued simplifications to accounting for share-based payments. The areas of simplification include accounting for income taxes and award forfeitures and providing flexibility in statutory tax rates to meet withholding requirements. The authors provide examples of the revised accounting entries and examine the impact of the change in accounting for income taxes on the seven largest U.S. companies. With an effective date for years beginning after December 15,2016, corporate accountants and financial executives need to understand the financial reporting implications of the changes that will add volatility to reported income tax expense, earnings, and effective tax rates of companies that rely heavily on share-based payments.