FASB Flash Report - June 2014

On June 19, 2014, the FASB issued ASU 2014-12 ^[1] to clarify that a performance  target in a share-based compensation award that could be achieved after an  employee completes the requisite service period should be treated as a  performance condition that affects the vesting of the award. As such, the  performance target should not be reflected in estimating the grant-date fair  value of the award. 

^[1] Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force).