Article
BDO Bulletin: FASB Clarifies the Accounting for Share-Based Consideration Payable to a Customer
May 20, 2025ArticleBDO Bulletin: FASB Clarifies the Accounting for Share-Based Consideration Payable to a Customer
May 20, 2025FASB issued ASU 2025-04 to address diversity in accounting for share-based payment awards to customers. It clarifies vesting conditions as performance conditions and applies ASC 718 for measurement. The ASU removes the policy election for forfeitures, requiring adjustments for transaction price based on vesting probability and forfeiture estimates.
