Slashdot Mirror
Domain: fasb.org
Stories and comments across the archive that link to fasb.org.
Stories · 2
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The Coming Expensing of Employee Stock Options
An anonymous reader writes "This accounting change will reverberate loudly throughout geekdom. "Users of financial statements...expressed to the FASB their concerns that (the current handling of stock options) results in financial statements that do not faithfully represent the economic transactions affecting the issuer, namely, the receipt and consumption of employee services in exchange for equity instruments. Financial statements that do not faithfully represent those economic transactions can distort the issuer's reported financial condition and results of operations, which can lead to the inappropriate allocation of resources in the capital markets." Taken from FASB Statement of Financial Accounting Standards No. 123 (Dec 2004). A FAQ has been published as well." Yes; the data is from 12/16/04, but this will be a huge change in how tech companies work. -
The Coming Expensing of Employee Stock Options
An anonymous reader writes "This accounting change will reverberate loudly throughout geekdom. "Users of financial statements...expressed to the FASB their concerns that (the current handling of stock options) results in financial statements that do not faithfully represent the economic transactions affecting the issuer, namely, the receipt and consumption of employee services in exchange for equity instruments. Financial statements that do not faithfully represent those economic transactions can distort the issuer's reported financial condition and results of operations, which can lead to the inappropriate allocation of resources in the capital markets." Taken from FASB Statement of Financial Accounting Standards No. 123 (Dec 2004). A FAQ has been published as well." Yes; the data is from 12/16/04, but this will be a huge change in how tech companies work.