Stock-option accounting guidance.The SEC's Office of the Chief Accountant A person who has the requisite skill and experience in establishing and maintaining accurate financial records for an individual or a business. The duties of an accountant may include designing and controlling systems of records, auditing books, and preparing financial statements. has issued a letter addressing the appropriateness of stock-option accounting practices that have led to recent company restatements due to errors in accounting for grants of stock options. Specifically, the letter discusses the accounting consequences under Accounting Principles Board The Accounting Principles Board (APB) is the former authoritative body of the American Institute of Certified Public Accountants (AICPA). It was created by the American Institute of Certified Public Accountants in 1959 and issued pronouncements on accounting principles until 1973, Opinion No. 25, "Accounting for Stock Issued to Employees," for various circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , including: * Dating an option award to predate the actual award date; * Exercise price set by reference to a future market price; * Uncertainty as to individual award recipients; * Grants prior to the commencement of employment; and * Timing of option grants. Download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. the letter at www.sec.gov/info/accountants/staffletters/fei_aicpa091906.htm. |
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