FASB issues statement on acquisitions of financial institutions, exposure draft on accounting for stock options.

• Position: Accounting & auditing news

Last month the Financial Accounting Standards Board issued FASB Statement No. 147, Acquisitions of Certain Financial Institutions. That statement, which provides guidance on the accounting for the acquisition of a financial institution, applies to all acquisitions except those between two or more mutual enterprises (the board has a separate project on its agenda that will provide guidance on the accounting for transactions between mutual enterprises).

Copies of Statement 147 may be obtained through the FASB's Order Department by calling 800/748-0659 or by placing an order on the FASB's Web site at www.fasb.org.

In another action, the FASB has issued an exposure draft, Accounting for Stock-Based Compensation--Transition and Disclosure, that would amend FASB Statement No. 123, Accounting for Stock-Based Compensation. The comment period ends Nov. 4.

According to the board, the proposed amendment is designed to enable companies that choose to adopt the preferable fair value based method to report the full effect of employee stock options in their financial statements immediately upon adoption, and to make available to investors better and more frequent disclosure about the cost of employee stock options. The proposed changes would...