October 9, 2002
The FASB has issued an Exposure Draft on options expensing – with comments due by November 4th. The FASB hopes to amend SFAS 123 by the end of the year – so it would be effective for the financials filed in the upcoming proxy season for companies with 12/31 fiscal year ends.
These changes would provide three methods of transition for companies that voluntarily adopt the fair value method of recording expenses relating to stock options. In addition, companies would be required to provide clearer and more prominent disclosures about the cost of stock-based employee compensation – and include this disclosure each quarter in their Form 10-Qs.
The Exposure Draft is at http://www.fasb.org/draft/ed_amend_st123.pdf.