SEC extends dates for stock option compliance.

AuthorHeffes, Ellen M.
PositionDomesticNEWS - Securities and Exchange Commission

In a move that The Wall Street Journal said "marked a rare instance of the SEC directly overruling the Financial Accounting Standards Board (FASB) on the details of a new accounting standard," The Securities and Exchange Commission (SEC) announced on April 14 the adoption of a new rule that amends the compliance dates for FASB Statement of Financial Accounting Standards No. 123--revised 2004, Share-Based Payment Statement No. 123(R). It does not change the accounting; it only changes the dates for compliance with the standards.

Instead of implementing the standard as of the beginning of the first interim or annual period that begins after June 15, 2005 or after Dec. 15, 2005 for small business issuers, the new rule allows companies to implement the statement at the beginning of their next fiscal year.

This means, for example, that the financial statements for a calendar year-end company do not need to comply with Statement No. 123(R) until the interim financial statements for the first quarter of 2006 are filed with the SEC. Those with a June 30 year-end, however, must comply with Statement No. 123(R) when the interim financial...

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