Since 1973, the Financial Accounting Standards Board (FASB) has been tasked with establishing standards of financial accounting that govern the preparation of financial reports by nongovernmental entities. Arguably even more difficult than the task of maintaining and updating accounting standards is guiding and supporting the implementation of these new standards across all reporting companies. The FASB understands the importance of the two way conversation between preparers and the organization – and the impact feedback can have on successful adoption of new accounting standards. The FASB recently published an article describing their three strategies for the consistent application of new standards and discussed their dedication to facilitating a smooth transition.
Employee stock purchase plans (ESPPs) provide an effective way to incentivize employees and offer lower compensation cost and tax advantages to the issuer. When developing an ESPP plan, companies must consider a number of regulatory requirements which may affect the cost of the program and participation rates.