FASB delays controversial stock option rule.

The FASB will delay by six months the effective date for public and nonpublic companies to implement Statement 123R, its proposed standard that would require companies to expense the value of employee stock options in the income statement.

FASB's exposure draft had an effective date for public companies of Jan. 1, 2005 (for fiscal periods beginning after Dec. 15, 2004), but the proposed rule will now become effective for periods beginning after June 15, 2005, or the third quarter for companies on a calendar-year financial reporting cycle.

Additionally, FASB has granted small-business issuers and nonpublic companies six additional months to begin implementing Statement 123R.

For more, visit www.fasb.org/project/equity-based_comp.shtml.