FASB Issues ASU Offering Practical Expedient to Nonpublic Entities for Measuring Equity-Classified Share-Based Payment Awards

The FASB has issued Accounting Standards Update (ASU) No. 2021-07, Compensation — Stock Compensation (Topic 718): Determining the Current Price of an Underlying Share for Equity-Classified Share-Based Awards — a consensus of the Private Company Council. The ASU allows nonpublic entities to use, as a practical expedient, “the reasonable application of a reasonable valuation method” to determine the current price input of equity-classified share-based payment awards issued in exchange for goods or services.

For more information, the press release on the FASB’s Web site.