The Financial Accounting Standards Board on May 3 issued an updated standard clarifying an issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options that stay equity classified after change or exchange.
The accounting standards update provides guidance on how an issuer would recognize the effect of these transactions, the board said. It offers a principles-based framework to determine whether an issuer should recognize the modification or exchange as an adjustment to equity or an expense, it said in a statement.
Be the first to comment