FASB Issues Guidance on Share-Based Payments Made to Customers

The FASB has issued Accounting Standards Update (ASU) No. 2019-08, “Codification Improvements — Share-Based Consideration Payable to a Customer.”

The ASU clarifies the accounting for share-based payments issued as consideration payable to a customer under ASC 606. Under the ASU, entities are required to apply the guidance in ASC 718 to measure and classify share-based payments issued to a customer that are not in exchange for a distinct good or service (i.e., share-based sales incentives).

For more information, see Deloitte's related Heads Up newsletter as well as the press release and ASU on the FASB’s Web site.