BusinessPostCorner.com
No Result
View All Result
Saturday, June 28, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

FASB proposes to add guidance on accounting for profits interest awards

May 11, 2023
in Accounting
Reading Time: 3 mins read
A A
0
FASB proposes to add guidance on accounting for profits interest awards
ShareShareShareShareShare

The Financial Accounting Standards Board proposed an accounting standards update Thursday that would add illustrative guidance to help companies determine whether the profits interest and similar awards they hand out to executives should be accounted for as share-based payment arrangements.

The changes would be made within the scope of Topic 718, Compensation—Stock Compensation in FASB’s accounting standards codification. 

The term “profits interest” isn’t defined in U.S. GAAP, FASB noted, but differentiates those interests from capital interests held by investors that provide those holders with rights to the existing net assets in a partnership. Some entities, usually private companies, provide employees and other service providers with profits interest and similar awards to align compensation with the company’s operating performance and provide those holders with the opportunity to participate in future profits and/or equity appreciation of the company.

FASB, GASB and FAF logos on the wall at headquarters in Norwalk, Connecticut

Courtesy of GASB

FASB’s Private Company Council and other stakeholders have pointed to differences in practice among businesses in how they account for these awards, whether as a share-based payment arrangement under Topic 718 or similar to a cash bonus or profit-sharing arrangement under Topic 710, Compensation—General, or other Topics.  

As certain public business entities also may be required to account for profits interest awards, the PCC recommended that FASB add a project that would provide illustrative guidance for all reporting entities that account for profits interest and similar awards.

FASB is asking for comments on the proposal by July 10, 2023.

The proposed ASU, including information on how to submit comments, is available at www.fasb.org.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Why is Congress watching these 2 drivers of rising healthcare costs?

Next Post

Crypto Investors Scratching Their Heads Over Biden’s $18 Billion Tax Threat Should Look At Wash Sales

Next Post
Crypto Investors Scratching Their Heads Over Biden’s  Billion Tax Threat Should Look At Wash Sales

Crypto Investors Scratching Their Heads Over Biden’s $18 Billion Tax Threat Should Look At Wash Sales

US says it inflicted ‘severe damage’ on Iran’s nuclear programme

US says it inflicted ‘severe damage’ on Iran’s nuclear programme

June 22, 2025
US Judge sides with AI firm Anthropic over copyright issue

US Judge sides with AI firm Anthropic over copyright issue

June 25, 2025
Shell denies reports of BP mega-merger of Big Oil rivals

Shell denies reports of BP mega-merger of Big Oil rivals

June 25, 2025
Donald Trump claims Israel and Iran have agreed ceasefire

Donald Trump claims Israel and Iran have agreed ceasefire

June 23, 2025
Elon Musk promised a “major rebound” in Tesla sales. But angry Europeans still aren’t buying his cars

Elon Musk promised a “major rebound” in Tesla sales. But angry Europeans still aren’t buying his cars

June 25, 2025
Early intelligence suggests Iran’s uranium largely intact, European officials say

Early intelligence suggests Iran’s uranium largely intact, European officials say

June 26, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

A self-described Democratic Socialist could be NYC’s next mayor, and the ultra rich are in revolt— ‘hot commie summer’

A self-described Democratic Socialist could be NYC’s next mayor, and the ultra rich are in revolt— ‘hot commie summer’

June 28, 2025
XRP Surges as Ripple CEO Garlinghouse Signals End to SEC Dispute

XRP Surges as Ripple CEO Garlinghouse Signals End to SEC Dispute

June 28, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!