Options Backdating: Plenty to Worry About

Armao, Joseph; Raskin, Kenneth
October 2006
Investment Dealers' Digest;10/30/2006, Vol. 72 Issue 41, p20
Trade Publication
The article provides tips for CFOs to determine if their company is at risk for stock options backdating. CFOS must look closely at all written stock option plan documents and board policies regarding options. Internal review of stock options practices must be initiated immediately. CFOS should determine if a restatement of financial statements and revised public disclosures are needed in consultation with outside auditors.


Related Articles

  • Stock options from parent.  // Accountancy;Mar2002, Vol. 129 Issue 1303, p114 

    This article answers a query related to stock options from parent company to its subsidiaries, taking an example of ABC which is 100% owned by ABCH. The reply says that the ABC directors' participation in ABCH's stock option plan arises because they are directors of ABC. These are transactions...

  • FEI President Rebuts New York Times Columnist's Views on Financial Reporting.  // Financial Executive;May/Jun99, Vol. 15 Issue 3, p59 

    This article presents a reprint of a letter to the editor published in the New York Times on April 18, 1999. It was written by Phil Livingston, president of Financial Executives International, who defends stock options as an important component of economic growth. He also says that investors...

  • Stock Picking in Disguise? New Evidence that Hedge Fund Activism Adds Value. Solarz, Benjamin S. // Michigan Journal of Business;Jan2010, Vol. 3 Issue 1, p101 

    Using a large hand-collected data set spanning from 2000 through 2008, I find substantial evidence that activist hedge funds do more than pick stocks; they improve them. Controlling for differences in target firms, activist investments outperform the same hedge funds' passive investments. Over...

  • New Option Expensing Rulings Spawn New Options. Roberts, David; Roberts, Thomas // Financial Executive;May2005, Vol. 21 Issue 4, p26 

    The article reports that the Financial Accounting Standards Board (FASB) issued the Statement of Financial Accounting Standards 123 Revised, FAS 123(R), which mandates that companies expense the fair value of their employee stock options on the face of their income statements. This mandate,...

  • The Real Accounting Scandal. Feldman, Amy // Money;Sep2002, Vol. 31 Issue 9, p48B 

    Focuses on the accounting of stock options by corporations. Differences between the financial statement of a company which lists stock options in and one that does not; Laws related to listing stock options in these statements; Plans of several companies to list options in an effort to avoid...

  • Atmel Expects Big Financial Restatement. Taylor, Colleen // Electronic News;11/6/2006, Vol. 52 Issue 45, p27 

    The article reports on the expectations of Atmel Corp. that the backdating discovery, based on a preliminary determination from the audit committee conducting an independent investigation of its stock option grant practices, will result in a big restatement of its financial records. The company...

  • Accounting for Stock Options. DeBoskey, David G.; Lightner, Kevin M. // CPA Journal;Aug2011, Vol. 81 Issue 8, p50 

    The article focuses on a benefit comparison between the U.S. Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS) in accounting for stock options with graded vesting attributes. Under GAAP, the graded vesting schedule in recognizing...

  • US investor raps options stance.  // Accountancy;Jun2002, Vol. 129 Issue 1306, p14 

    The divide in the U.S. between shareholders' need for transparent financial information and corporate U.S.'s attitude to accounting for share options has been reinforced by Warren Buffett, chairman of Berkshire Hathaway (BH). He has reiterated his view that employee share options should be...

  • Expensing Isn't the Only Option: Alternatives to the FASB's Stock Option Expensing Proposal. Templin, Benjamin A. // Journal of Corporation Law;Winter2005, Vol. 30 Issue 2, p357 

    Focuses on the Financial Accounting Standards Board's (FASB) proposed rule requiring companies to treat stock options as an expense on their income statements. Argument that options are an integral and unique characteristic of American capitalism that has led to technological innovation and...


Read the Article


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

Try another library?
Sign out of this library

Other Topics