KPMG reports on ASU 2017-09, which clarifies what constitutes a modification of a share-based payment award. The ASU specifies when companies will need to apply modification accounting under ASC 718-20.
Mandatory effective dates and early adoption provisions:
Effective date:
Annual periods – Fiscal years beginning after
Interim periods – In fiscal years beginning after
Early adoption allowed?
All entities
Dec. 15, 2017
Dec. 15, 2017
Yes, for reporting periods for which financial statements have not yet been issued (public business entities) / made available for issuance
Defining Issues on the proposals, which have been finalized without substantive changes: FASB proposes scope clarification for share-based payment modifications
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