To help you become familiar with the accounting standards, this case is designed to take you to the FASB’s Web site and have you access various publications. Access the FASB’s Web site at www.fasb.org. Click on “Pronouncements & EITF Abstracts.”
In the chapter, we discussed share-based payments and related disclosure. For this case, we will use Statement No. 123(R), “Share-Based Payments.” Open FASB Statement No. 123(R).
1. Beginning with paragraph (a) of the summary, the standard details four reasons cited by the FASB for issuing SFAS 123(R). Briefly summarize those four reasons.
2. Paragraph 1 of the standard specifies the measurement objective to be satisfied when valuing share-based payments. What is the measurement objective?
3. Paragraph 64 of the standard details the disclosure requirements associated with share-based payments. Briefly summarize the disclosure requirements.