IASB votes to propose expensing of stock options

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17 Jul 2002

At its meeting on 16 July 2002 in London, the IASB approved the principle that the fair value of stock options given to employees (and others) should be recognised as expense.

The Board considered and rejected allowing an option of disclosure in lieu of expensing. For employees, fair value would be measured at grant date; for options given to non-employees, a different measurement date would be used. IASB expects to publish an exposure draft in the fourth quarter. The target effective date would be 1 January 2004, though this is tentative, and the IFRS might include a 'look-back' period to cover options granted after the exposure draft is issued. Click for information about the IASB's Agenda Project on Share-Based Payment. Discussion that day also included Insurance Contracts. We have combined all of our notes from the IASB meeting on 16-19 July 2002 on a Separate Page.

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