On May 10, 2017, the FASB issued ASU 2017-09,1 which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718.2 Specifically, an entity would not apply modification accounting if the fair value,3 vesting conditions, and classification of the awards are the same immediately before and after the modification.
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