FASB will issue its stock options exposure draft this week
30 Mar 2004
The US Financial Accounting Standards Board has announced that it will post its exposure draft, Share-Based Payment, to its Website "early in the week of March 29".
The FASB's proposals are expected to be largely the same as those in IASB IFRS 2, which was issued last month. IFRS 2 requires that all share-based payment transactions must be recognised in the financial statements, using a fair value measurement basis. An expense is recognised when the goods or services received are consumed. The same recognition and measurement standards apply to both public and non-public companies. In the United States, currently, FASB Statement 123 allows companies to choose either to recognise the fair value of stock options and other share-based payment as expense or to disclose those fair values in the notes.