The NASPP Blog

We thought summer was going to be quiet, but it doesn’t ever really happen that way, does it? One of the main buzz points of summer 2015 has been the FASB’s proposed amendments to ASC 718, which has been heavily covered in prior NASPP blog entries (“The NASPP’s Comment Letter” (8/18/2015) and “It’s Here! The FASB’s Amendments to ASC 718” (6/9/2015) as well as the NASPP Alert: “FASB Issues Exposure Draft of ASC 718 Amendments.” There’s a lot of information out there about the proposed amendments to ASC 718, and we recently asked some industry experts to weigh in on which amendments are the most significant, along with things to consider in preparation for the eventual implementation of final changes.

First, a Shameless Plug for Podcasting

We tackled the topic of the proposed amendments to ASC 718 in a recent podcast interview with Takis Makridis of Equity Methods and AmyLynn Flood of PwC. Before I tell you what they said, I need to make my occasional plug for podcasting. If you’re not listening to the NASPP Equity Expert Podcast, start now! A podcast is like a mini webcast, minus the slides. Most of the episodes are short – in the 20 minute range – perfect listening in the car on the train or during transition points of your day. It’s portable, people. All you need is your phone, a podcast app, and headphones. The NASPP Equity Expert podcast is free – to everyone – members and non members. So if you want to stay on top of the hottest topics in the world of stock plans, subscribe to our podcast today.

Key Areas to Watch

Now we can return to the topic at hand. In speaking with Takis and AmyLynn, I asked them which amendments proposed by the FASB are the most significant to our stock plans. They suggested that share withholding for tax payments, tax accounting, and forfeiture rate changes are some of the most substantial areas to monitor.

Additionally, the podcast covered some interesting insights into some of the public sentiment reflected in comment letters submitted to the FASB (the deadline for comment submissions was 8/14/2015 – click here to read the NASPP’s comment letter). Not all of the proposed changes are seeming to be welcome changes.

What’s Next?

While no specific timeline has emerged from the FASB, and nobody has a reliable crystal ball, both Takis and AmyLynn agreed that it was conceivable to have a final draft of the amendments by sometime during the fourth quarter of 2015. In the meantime, companies should engage in internal discussions about how the proposed changes would impact current practices and procedures.

Listen to the full 18 minute podcast here.

-Jenn