FASB agrees to delay its stock options standard
14 Oct 2004
The US Financial Accounting Standards Board has voted to delay the effective date of its proposed standard on accounting for equity-based compensation by six months – to interim or annual periods beginning after 15 June 2005. Therefore, an entity would apply the final statement to all employee awards of share-based payment granted, modified, or settled in any interim or annual period beginning after 15 June 2005. FASB's exposure draft would require recognition of an expense for all equity-based compensation, including stock options.
The proposal, as modified as a result of consideration of comments received, is similar though not identical to IFRS 2 Share-based Payment, which is effective for financial years beginning on or after 1 January 2005, with earlier application encouraged.