FASB Proposes Technical Amendments to FAS 123(R)

August 2, 2006

FEI Summary

On Aug. 2, 2006, the Financial Accounting Standards Board (FASB) released for public comment Proposed FSP No. FAS 123(R)-f, “Technical Corrections of FASB Statement No. FAS 123(R) [Accounting for Share-Based Payment].”  

The proposed FSP would amend the following paragraphs in FAS 123(R):

• paragraph A240(d)(1) to exempt nonpublic entities from disclosing the aggregate intrinsic value of outstanding fully vested share options (or share units) and share options expected to vest,
• paragraph A102 of Illustration 4(b) to revise the computation of the minimum compensation cost that must be recognized to comply with paragraph 42 of Statement 123(R), and
• paragraph A170 of Illustration 13(e) to indicate that at the date that the illustrative awards were no longer probable of vesting, any previously recognized compensation cost should have been reversed.

The comment deadline on the proposed FSP is Sept. 2, 2006.