FASB Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606)

Published: Nov 7, 2024

TXCPA’s Professional Standards Committee supports the proposed ASU on stock compensation and customer contracts, backing clearer guidance, reduced diversity in practice, and staggered adoption for public and private entities.

    This letter is a response from the TXCPA Professional Standards Committee (PSC) regarding the proposed Accounting Standards Update (ASU) on stock compensation and customer contracts. The PSC generally agrees with the amendments, believing they are clear, operable, and consistent with existing guidance, and will reduce diversity in practice. The letter provides detailed feedback on specific questions, supporting changes such as the incorporation of customer performance targets and the elimination of certain forfeiture options. The PSC also offers recommendations on implementation timelines, suggesting staggered adoption dates for public and private entities.

    Read the full comment letter here. View TXCPA PSC comment letter here.

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