PwC responds to proposed accounting for share-based payments to customers

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Comment letter , PwC US Apr 15, 2019

The FASB has proposed more detailed guidance for share-based payments issued to customers. Read our response to the FASB here.


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:

  • Accounting for subsequent modifications and settlements of awards granted to customers.
  • More specific guidance for how to determine the amount to reflect as a payment to a customer for awards with performance conditions.
  • Providing similar guidance for awards to a lessor or lessee in conjunction with a lease.

Contact us

Heather Horn

Heather Horn

US Strategic Thought Leader, National Professional Services Group, PwC US

David Schmid

David Schmid

International Accounting Leader, National Professional Services Group, PwC US

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