Financial Reporting


The International Accounting Standards Board (IASB) in February issued International Financial Reporting Standard (IFRS) 2, Share-based Payment, on accounting for such transactions, including grants of share options to employees ( www.iasb.org/news/press.asp ). Until the issuance of IFRS 2, international accounting standards did not address the recognition or measurement of options-based compensation expenses.

At press time, a spokesperson for the Financial Accounting Standards Board (FASB) said it would issue an exposure draft on this subject in late March and release final stock-based compensation guidance by the end of the year. She said FASB’s position is very similar on all key points to that of the IASB in requiring companies to use a fair-value approach to recognize the cost of employee stock options at grant date as an expense on their income statements.

SPONSORED REPORT

Solving the lease accounting challenge

The challenges of the new lease accounting standard have been pervasive to say the least. In this free, independently-written report, you'll learn effective adoption strategies as well as resources for easing the transition to the new standard.

FEATURE

Tackling TCJA changes this tax season

Return preparers must be ready for how the Tax Cuts and Jobs Act has modified many common features of individual and business returns.