The Financial Accounting Standards Board (FASB) is seeking public comment on the proposed Accounting Standards Update (ASU) to standardise how issuers initially measure paid-in-kind (PIK) dividends on equity-classified preferred stock. This guidance is expected to address the current diversity in practice and enhance the comparability of financial reporting. The proposed amendments would apply to all entities that issue PIK dividends on equity-classified preferred stock. According to the proposal, these ...

The Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update (ASU) aimed at refining derivative accounting practices and addressing the diversity in accounting for share-based noncash consideration. The revisions in this update respond to feedback from stakeholders who believe that the current definition of a derivative is overly extensive and should be exempted for certain agreements. They are applicable to all entities engaged in nonexchange-traded contracts where the under ...