The FASB Looks At Accounting For Stock Options

Crystal, Graef S.
June 1986
FE: The Magazine for Financial Executives;Jun1986, Vol. 2 Issue 6, p26
Trade Publication
Reports that to create a level playing field between stock options and other forms of long-term incentive compensation, the Financial Accounting Standards Board is expected to issue a landmark ruling that would require companies to charge their earnings with the estimated value of the stock option grant, as determined at the time the grant is made. Favorable accounting treatment to stock option grants; Example showing the minimum value of a stock option; Rationale behind this approach.


Related Articles

  • Options, options. Jones, Llewellyn // Finance Week;6/16/2003, p32 

    Reports that South African companies will soon be required to expense share options as a cost of business. Adherence to standards set by the International Accounting Standards Board; Argument against expensing options; Difficulties in predicting the effect of the new standard on company earnings.

  • The Development of a Verified Fair Value Approach to Accounting for Employee Stock Options. Howe, Harry; Lippitt, Jeffrey // International Journal of Management;Apr2010, Vol. 27 Issue 1, p162 

    We consider problematic features of SFAS 123 (R) and then present a new approach to the accounting for Employee Stock Options (ESO) that addresses prominent criticisms of both grant date accounting (inaccurate estimates) and exercise date accounting (delayed recognition). The accounting for our...

  • FASB Proposed Rule on Stock Option Accounting. Barlas, Stephen // Strategic Finance;Jun2004, Vol. 85 Issue 12, p24 

    The article discusses a proposed rule on stock option accounting by The Financial Accounting Standards Board (FASB). The rule would force U.S. companies to begin accounting for employee stock options as an expense in 2005. Critics say the regulation could undermine U.S. competitiveness, restrict...

  • Ethics, Privilege and Related Issues in Employee Benefits Practice. Birschel, Dee // Benefits Quarterly;2004 Third Quarter, Vol. 20 Issue 3, p84 

    This section presents an abstract of the article Ethics, Privilege and Related Issues in Employee Benefits Practice, which appeared in the spring 2004 issue of the Journal of Deferred Compensation.

  • Fair shares for all. Mabotja, Sello // Finance Week;2/2/2004, p28 

    Reports that South Africa will adopt an accounting standard requiring companies to disclose employees' share-based payments in their income statements. Conversion of share options into expenses; Reduction in corporate profits; Alternative incentives to employees. INSET: Aspects of Exposuer...

  • Highly paid find relief in deferred comp. Satinsky, Martin J.; Moore, Cynthia T. // National Underwriter / Life & Health Financial Services;9/5/94, Vol. 98 Issue 36, p7 

    Focuses on the impact of the Revenue Reconciliation Act of 1993 on non-qualified deferred compensation plans. Common types and benefits of deferred compensation arrangements; True deferral plans; Supplemental benefit plans; Death-benefit-only plans.

  • The stock option saga continues.  // CPA Journal;Sep94, Vol. 64 Issue 9, p10 

    Reports on the response to the exposure draft of the Financial Accounting Standards Board (FASB) proposal titled `Accounting for Stock-based Compensation.' Total number of responses; Opposition by the majority of respondents to the proposal; Opposition by the United States Senate to the...

  • Accounting for stock-based compensation: SFAS 123. Brozovsky, John A.; Kim, Jeffrey C. // Ohio CPA Journal;Jan-Mar98, Vol. 57 Issue 1, p10 

    Presents information on the SFAS 123, standards on how to calculate compensation for stock options, which were passed by the Financial Accounting Standards Board in Ohio. Who does the SFAS 123 affect; Examination of changes caused by the SFAS 123; Details on the Black-Scholes option-pricing...

  • Proposed accounting for fixed stock options: Financial statement impact. Wilson, Arlette C.; Weld, Len // National Public Accountant;Jun95, Vol. 40 Issue 6, p25 

    Studies differences in accounting for fixed stock options that exist between the current standard issued by the Financial Accounting Standards Board (FSAB) and the proposed standard under the exposure draft, `Accounting for Stock-Based Compensation.' Proposed changes in accounting for fixed...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics