Guidance on auditing fair value of share options.

• Position: PCAOB News - Public Company Accounting Oversight Board - Brief article

The Public Company Accounting Oversight Board has issued a staff Q&A about auditing the fair value of share options granted to employees.

The guidance provides direction for auditing a company's estimation of the fair value of stock options granted to employees pursuant to Statement of Financial Accounting Standards No. 123 (Revised), Share-Based Payment (FAS 123R).

FAS 123R became applicable for financial statements of companies with fiscal years ending on or after June 15, 2006.

The Q&A addresses auditing the fair value measurements associated with determining compensation cost. It also...