The move by the IASB will most likely translate into a similar delay in any final guidelines from the US Financial Accounting Standards Board (FASB). Previously, the consensus was that a decision would be reached by the end of 2003, according to an article in The Employee Ownership Update by the National Center for Employee Ownership’s (NCEO) Executive Director Corey Rosen.
Finalization of the IASB’s proposals was expected by 2004 after the November 2002proposal that would require non-US companies to treat stock options as an expense by the year 2004(See IASB Releases Option Expensing Proposal ). Following the announcement by its international counterpart, the FASB then unanimously agreed in April that companies should be required to treat stock option grants as expenses, and said a new rule could be in place by next year (See FASB Says Yes to Option Expensing ).
The IASB Web site contains no information that supports the NCEO’s assertion that the standards will be postponed until July 2004. A copy of the NCEO article can be found at http://www.nceo.org/columns/cr147.html .