On July 23, 2024, FASB issued a proposal to clarify two aspects of derivative accounting guidance. One involves a new principles-based derivative scope exception for contracts with features based on the operations or activities of one of the parties to the contract. The other calls for revenue recognition guidance in Accounting Standards Codification 606 to be used for a share-based payment from a customer that is consideration for the transfer of goods or services. Download the PDF below for details on the proposal.
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