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In its recent meeting with representatives of the Accounting Standards Executive Committee of the AICPA, the Financial Accounting Standards Board (FASB) did not object to the AICPA's final statement of position (SOP), "Employers' Accounting for Employee Stock Ownership Plans," which supersedes AICPA SOP 76-3, "Accounting Practices for Certain Employee Stock Ownership Plans." Under the new SOP, employers should:
1. Report the issuance of new shares or the sale of treasury shares to the ESOP when the issuance or sale occurs and should also report a corresponding charge to unearned ESOP shares.
2. Recognize compensation cost equal to the fair value of the ESOP shares committed to be released to compensate employees directly.
3. Report satisfaction...