FASB Proposes Improvements to the Accounting for Share-Based Payments to Customers

The FASB has issued a proposed Accounting Standards Update (ASU), Codification Improvements — Share-Based Consideration Payable to a Customer.

The proposed ASU would clarify the accounting for share-based payments issued as sales incentives to customers. Entities would be required, among other things, to apply the guidance in ASC 718 when measuring and classifying share-based payments to a customer. Comments on the proposed ASU are due by April 4, 2019.

For more information, see the proposed ASU on the FASB’s Web site.