ASC 718 Changes – The Countdown Begins

In Accounting Standards Update No. 2016-09, FASB recently released its long-awaited updates to ASC 718. The overall goal was simplification, but the result is a mixed bag.

Some of the revisions, such as those related to withholding rates and liability classification, are very helpful. The elimination of the APIC pool, on the other hand, gives rise to new sources of income statement volatility. Either way, the revised standards have a significant effect on public and private companies alike.

Replay our May 19, 2016 webcast for a discussion of this major revision. We examine:

• The scope of ASU 2016-09
• Ways the revisions can impact your financials
• Tools for managing the earnings volatility triggered by removal of the APIC pool
• Tax withholdings and how FASB and IRS rules interact
• Considerations surrounding ongoing use of a forfeiture rate
• Implementation tips for a smooth transition
• Implications for private companies
• Early adoption considerations

Get a comprehensive breakdown of the different ASC 718 revisions along with our take on what they could mean for you. Find our related Issue Brief here.