Accounting for stock grants to nonemployees

✍ Scribed by Sacasas, Rene; Munter, Paul

• Book ID: 101225207
• Publisher: John Wiley and Sons
• Year: 1999
• Tongue: English
• Weight: 70 KB
• Volume: 10
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/(sici)1097-0053(199921)10:3<145::aid-jcaf13>3.0.co;2-q

✦ Synopsis

I n October 1995, after much controversy and concern, the Financial Accounting Standards Board (FASB) issued FAS No. 123, Accounting for Stock-Based Compensation. In spite of the title of the document, the reality is that since most entities have adopted FAS No. 123 through pro forma disclosure rather than by recognition and measurement, FAS No. 123 is, primarily, a disclosure rather than accounting standard in current practice. 1 FAS No. 123 allows companies to continue using the provisions of APB Opinion No. 25, Accounting for Stock Issued to Employees, when accounting for stock-based awards that are issued to employees. However, for stock-based awards issued to nonemployees, paragraph 8 of FAS No.