The FASB issued two accounting standards updates in 2016 and 2017, amending the accounting for stock compensation / share-based payments.
The FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting in March 2016. Intended to simplify aspects of the accounting for and reporting of stock-based compensation as follows:
Nonpublic entities have two additional simplification provisions related to determining the expected term of certain share-based awards, and upon adoption of the new guidance, a one-time opportunity to change the measurement basis for all liability-classified awards to intrinsic value.
The guidance was effective in Q1 2017 for calendar year-end public business entities and is effective in 2018 for calendar year-end nonpublic business entities.
Separately, the FASB issued new guidance ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, in May, 2017, to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification.