Yes or No on Stock Options
There seems to be a number of rumours in the press that there will be a delay in implementing expensing of stock options, on Bloomberg today there was a story that:
Commissioners at the SEC are voting on a staff proposal to delay implementation of the rule, which treats employee stock options as an expense, until the start of a company's first fiscal year after June 15. Under the Financial Accounting Standards Board's current rule, it would have started with the first fiscal quarter after that date.
What is the effect of the option expensing rule:
Such accounting would have reduced per-share profit among companies in the Standard & Poor's 500 Index by 8 percent in 2003, according to a study by Bear Stearns Cos.
Hopefully the SEC will not overturn the FASB's decision and investors can get a better idea of how much compensation expense is associatedx with stock options.
Commissioners at the SEC are voting on a staff proposal to delay implementation of the rule, which treats employee stock options as an expense, until the start of a company's first fiscal year after June 15. Under the Financial Accounting Standards Board's current rule, it would have started with the first fiscal quarter after that date.
What is the effect of the option expensing rule:
Such accounting would have reduced per-share profit among companies in the Standard & Poor's 500 Index by 8 percent in 2003, according to a study by Bear Stearns Cos.
Hopefully the SEC will not overturn the FASB's decision and investors can get a better idea of how much compensation expense is associatedx with stock options.
posted by Don Pagach at 3:13 PM
<< Home