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Proposed FASB Staff Position (FSP) - Determining Whether Instruments Granted in Shared-Based Payment Transactions Are Participating Securities

Tuesday, December 19, 2006

The FASB issued a proposed FSP that addresses whether instruments granted in shared-based payment transactions may be participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing basic earnings per share (EPS) pursuant to the two-class method described in paragraphs 60 and 61 of FASB Statement No. 128, Earnings per Share. A copy of the proposed FSP is available below. IMA’s Financial Reporting Committee submitted a comment letter that addressed all of the pertinent issues in the proposed FSP.

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