Accounting for share-based compensation – Guidance on awards that vest after an employee leaves
Abstract: In ASU No. 2014-12, FASB answered an important question regarding the treatment of share-based awards: What happens if an award contains a performance target that affects vesting and may be achieved after an employee retires or otherwise completes the requisite service period? The new rules require companies to treat this type of performance target as a performance condition. This article explains what this means and why it matters.