FASB Adopts Revised Standard Mandating Expensing of Stock Options
12.20.2004
On December 16, 2004, the Financial Accounting Standards Board released its revised Statement No. 123(R), Share Based Payments. This is the anticipated revised standard on accounting for equity awards and requires companies to expense the value stock options and other equity awards granted to employees. The new standard is effective for public companies (other than small business filers) for financial statement periods (including quarterly) beginning after June 15, 2005. This means that calendar-year public companies will be required to adopt the new standard for their third quarter of 2005. Public companies filing as small business issuers will be required to comply with financial statement periods beginning after December 15, 2005.
