|
|
||
FASB Issues Share-Based Payment Standard
On Dec. 16, 2004, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 123 (revised), "Share-Based Payment" ("SFAS 123 (R)"). This standard requires expensing of stock options and other share-based payments beginning in 2005, and supersedes FASB's earlier rule (the original SFAS 123) that had allowed companies to choose between expensing stock options or showing pro forma disclosure only.
The final standard represents the result of FASB's redeliberations of its Share-Based Payment Exposure Draft ("ED") issued Mar. 31, 2004, on which it received thousands of comment letters. FASB also held numerous public roundtables following issuance of the ED.
Public entities (other than those filing as small business issuers) will be required to apply Statement 123(R) as of the first interim or annual reporting period that begins after June 15, 2005. Public entities that file as small business issuers will be required to apply Statement 123(R) in the first interim or annual reporting period that begins after December 15, 2005. The FASB decided to provide nonpublic entities additional time to prepare for the implementation of Statement 123(R). Those entities will not be required to apply Statement 123(R) until the beginning of the first annual reporting period after December 15, 2005.
The final standard, SFAS 123(R), is available here.
FASB Press Release on SFAS 123(R).
FASB Issues Frequently Asked Questions (FAQ) document relating to SFAS 123(R ).
Additional guidance or summaries of SFAS 123(R) will be posted to this Web page, as they become available.
More Guidance From: |
|
|
Deliotte | |