IASB Invites Comments On Stock Options Treatment.

Want to comment on the International Accounting Standards Board Discussion Paper, Accounting for Share-based Payment (refers to stock options)? You can, by Dec. 15. The first big issue the IASB is tackling looks like it could be highly contentious (see Phil Livingston's opinion on page 6) and could threaten the newly formed group's goals of converging global accounting standards.

Sir David Tweedie, IASB chairman, said: "The widespread use of share options to pay employees, external advisors and others; the calls from users of financial statements for improvements in accounting for these transactions; and the differing proposals emanating from national standard-setters demonstrate the importance of developing a high-quality global accounting standard on share-based payment." He acknowledges there are "complex issues for the Board to consider, in particular, how we can measure the value of employee share options." Tweedie hopes that additional comments will provide the Board with further insight into these issues.

Comments on the July 2000 IASC (International Accounting Standards Committee) Discussion paper produced in collaboration with other national standard-setters, were received from constituents around the world during the original comment period that ended in Oct. 2000, and the Board is concerned that some might not have responded, perhaps not realizing the issue's importance.

After the comment period and discussions over the succeeding months, the Board will develop an Exposure Draft (ED) of an International Financial Reporting Standard (IFRS) by mid-2002. The IASB will invite comments, which will be analyzed and considered before the IFRS is finalized. Address comments to [e-mail].