Accounting Standards Update · 2025

ASU 2025-04 — Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer

Affects606 Revenue from Contracts with Customers 718 Compensation—Stock Compensation

The amendments in this Update would reduce diversity in practice and improve the decision usefulness and operability of the guidance for share-based consideration granted to a customer in conjunction with selling goods or services.

This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2024-ED300—Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), which has been deleted.

For more information, see the following:

Accounting Standards Update 2025-04—Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer (PDF)

Issued: May 15, 2025

Text as published in the FASB Accounting Standards Codification, Basic View.