Nonpublic entities that provide share option awards to employees and nonemployees
August 17, 2020 – FASB issued proposed ASU
October 1, 2020 – Comments due on proposed ASU
The FASB’s proposals of the Private Company Council (PCC) would give nonpublic entities a practical expedient to determine the value of share-based payment option awards.
Under the proposals, the current price input of share option awards can be obtained using a valuation in accordance with the ‘presumption of reasonableness’ provisions of Section 409A of the US Internal Revenue Code.
The proposals limit the practical expedient to equity-classified share option awards only and would apply on an award-by-award basis.