Option-Expense Rule Is Put Off
(WSJ p. B2)

11 Sep 2003

The seven-member Financial Accounting Standards Board (FASB) decided Wednesday to postpone until next year a proposal requiring companies to expense employee stock options. The FASB is still trying to decide how best to value options. The decision pushes the expected date for a final rule into the second half of next year. In addition, the board signaled a preference for companies to use an option-pricing model called binomial, which is more sophisticated than the commonly used Black-Scholes model. The FASB continues to discuss whether either of these two models should be specified.