Article
New Stock Option Accounting Must Be Applied Properly
The new stock option accounting is probably the most controversial accounting change in years. This is because (i) some companies view stock options as an integral part of their compensation strategy, and are resisting the substantial income change, and (ii) the methods of valuing employee stock options are not well established or accepted. To avoid overstating the new stock option expense, companies will need to carefully consider how this new pronouncement is implemented.
Fulcrum Financial Inquiry LLP
