Administration March 8, 2006

FASB Proposes Technical Corrections to Options Reporting Statement

August 3, 2006 (PLANSPONSOR.com) - The Financial Accounting Standards Board (FASB) has issued a proposed FASB staff position (FSP) making technical corrections to FAS 123, which requires reporting of share-based payments.

Reported by

Rebecca Moore

Statement 123 exempts nonpublic entities from the requirement to disclose the aggregate intrinsic value of currently exercisable (or convertible) share options (or share units), but fails to exempt nonpublic entities from the requirement to disclose the aggregate intrinsic value of outstanding fully vested share options (or share units) and share options expected to vest, according to the FSP.

Requiring nonpublic entities to disclose the latter would require them to determine the former, therefore the FASB proposed an amendment exempting them from disclosing aggregate intrinsic value of outstanding fully vested share options (or share units) and share options expected to vest.

The FSP also revises certain illustrations provided in FAS 123 to revise the computation of the minimum compensation cost that must be recognized to comply with paragraph 42 of Statement 123, and to indicate that, at the date that the illustrative awards were no longer probable of vesting, any previously recognized compensation cost should have been reversed.

The changes are to be applied in the first reporting period following the date the FSP is posted to the FASB Web site.

The proposed FSP is here .