Comment letter , PwC US Apr 15, 2019
The FASB has proposed guidance on the accounting for share-based payment awards issued to customers. The proposal includes amendments primarily to ASC 606, Revenue from contracts with customers, and ASC 718, Compensation- Stock compensation. Under the revised guidance, the accounting for awards issued to customers will be similar to the accounting for other non-employee awards. This includes measuring awards at the grant date and classifying the awards based on the guidance in ASC 718. However, the value of the awards will be treated as a payment to a customer under ASC 606. In our response to the FASB, we support the proposed changes and also propose additional clarifications for:
The Revenue from contracts with customers guide is a comprehensive resource for entities accounting for revenue transactions under ASC 606.
Accounting for stock-based payments to a customer is a complex area. Find help in our updated accounting and reporting guide.
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