Proposed Accounting Standards Update – Share-Based Consideration Payable to a Customer

Financial Accounting Standards Board (“FASB”) proposed amendments to ASC 718 which requires entities to apply the guidance in ASC 718 to measure and classify equity instruments granted in connection with the sale of goods or services to customer.  Under the proposed amendment, entities are required to measure share-based payments to customers using the grant-date fair value of the share-based payment award and the amount would be recorded as a reduction in revenue.  The grant date is the date at which a grantor and a grantee reach a mutual understanding of the key terms and conditions of a share-based payment award.

Comments are due by April 18, 2019.

Please click on the link below to view the proposed amendment.

https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176172244836&acceptedDisclaimer=true