The Post-Implementation Review Report recently issued on FAS 123(R) finds certain elements difficult or costly to apply.
The Financial Accounting Foundation recently issued its Post-Implementation Review Report on FASB Statement No. 123(R), Share-Based Payment - or FAS 123(R). Overall, the review team concluded that FAS 123(R) is meeting its objectives and there have not been significant unanticipated consequences. However, certain elements of FAS 123(R) were found to be difficult or costly for companies to apply. This was particularly true for nonpublic entities due to the complexity of the instruments used in share-based payment awards.
No standard-setting process recommendations resulted from the review, and FASB doesn't plan to undertake a comprehensive review. However, the FASB staff’s outreach on improvements to accounting for share-based payment transactions is ongoing and will include identifying potential cost-effective solutions for areas that could be considered in potential narrow-scope projects.