SEC AMENDS EFFECTIVE DATES FOR SFAS NO.
123R ON STOCK OPTIONS
Washington, D.C., April 14, 2005 - The Securities and
Exchange Commission announced a new rule that amends the
effective dates for FASB Statement of Financial
Accounting Standards No. 123 (Revised 2004), Share-Based
Payment (SFAS No. 123R).
SFAS No. 123R, registrants would have been required to
implement the standard as of the beginning of the first
interim or annual period that began after June 15, 2005,
or after December 15, 2005 for small business issuers.
Calendar year-end companies that are not small business
issuers, therefore, would have been permitted to follow
the pre-existing accounting literature for the first and
second quarters of 2005, but required to follow SFAS No.
123R for their third quarter reports.
SEC's new rule allows companies to implement SFAS No.
123R at the beginning of their next fiscal year, instead
of the next reporting period, that begins on or after
June 15, 2005, or on or after December 15, 2005 for
small business issuers. This means, for example, that
the financial statements for a calendar year-end company
need not comply with SFAS No. 123R until the interim
financial statements for the first quarter of 2006 are
filed with the Commission. The financial statements for
a company, other than a small business issuer, with a
June 30 year-end, however, must comply with SFAS No.
123R when the interim financial statements for the
quarter beginning July 1, 2005 are filed.
SEC's rule does not change the accounting required by
SFAS No. 123R; it only changes the effective dates.