At its meeting today, the FASB discussed feedback received from an external fatal flaw review of a draft proposed Accounting Standards Update (ASU) on improving the accounting for share-based payment arrangements with nonemployees. The FASB staff noted that the external reviewers (1) were not opposed to the general notion that nonemployee share-based payments are not substantively different from employee share-based payments and (2) believed that separate models are therefore not warranted. In addition, the FASB did not receive comments that the draft’s proposed amendments to ASC 7181 would inadvertently change the accounting for employee share-based payments.
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