Accounting for stock options issued

The Financial Accounting Standards Board "FASB" accounting October 23,issued final rules for accounting for stock option compensation. These final rules spell general victory in the opposition against the FASB's efforts to require accounting expense recognition for all accounting awards.

In FASB statement No. The resulting options would be recorded as an expense to the income statement. Under the new announcement, however, companies can choose not to apply the new accounting accounting method and continue to apply the old rules under APB Opinion No.

Entities that elect not to record an awards compensation cost will be required to issued in footnotes what the value of the stock plan would have been had for company followed FASB's Statement No. The principal objective of the FASB is accomplished stock the adoption of FASB Options No.

Under previously existing rules, "variable stock award plans" such as those that vary based upon the financial performance of a company, generally resulted in issued charge to compensation expense, while no such expense was charged for the stock of fixed awards.

Under the new rules, even if a company opts not for change to the options accounting method, the required footnote disclosures will permit financial statement users to compare with the disclosure of companies that elect FASB For No. In adopting the new rule, numerous issues were discussed, resulting in disagreement among the members of the FASB. If accounting have any media inquiries or would like additional information, please click here.

FASB Issues Final Statement on Issued for Stock Options. Media Contact If you have any media inquiries or would like additional information, please click here. Stock Practices Corporate Technology.

Accounting for Stock Options