From the first e-Activity, discuss how you would respond or comment to the Exposure Draft that you researched.
Discuss whether or not you believe that Exposure Drafts add value to the accounting pronouncement development process.
From the first e-Activity, discuss how you would respond or comment to the Exposure Draft that you researched.
Discuss whether or not you believe that Exposure Drafts add value to the accounting pronouncement development process.
The FASB Exposure draft is a document released by the Financial Accounting Standard Board (FASB) for public commentary on proposed new accounting standards. Since changes in accounting standards can have far reaching effects, it is important to consider public feedback to ensure that unintended consequences from new standards can be minimized.
From the e-activity the exposure draft that I researched Stock-based compensation; this defines a fair value based method of accounting for an employee stock option or similar equity instrument and encourages all entities to adopt that method of accounting for all of their employee stock compensation plans. it also allows an entity to continue to measure compensation cost for those plans using the intrinsic value based method of accounting, Accounting for Stock Issued to Employees.
This is a common method used by corporations to compensate executives. The presumption is that executives will work harder since they want their own stock to rise in value and, therefore, have the best interests of shareholders in mind. Employees with stock options need to know whether their stock is vested. This means the stock will retain its full value even if they are no longer employed with that company.
If you think the value of your company's stock is going to go up and up, stock options offer a way to buy that stock cheaply. Stock options are not taxable until exercised, and then only under certain