The Financial Accounting Standards Board has released a proposed accounting standards update related to the scope of modification accounting for stock-based compensation.

FASB is issuing the proposed update to provide more clarity and discourage differences in practice when applying the guidance in the standards for stock compensation about a change to the terms or conditions of a share-based payment award.

A business can change the terms or conditions of a share-based payment award for a variety of reasons, FASB pointed out, and the nature and effect of the change can also vary significantly. Read More