Stock option accounting standards
Stock Option Rules Simplify Reporting, FASB Says If the Financial Accounting Standards Board is right, CFOs of companies that pay their employees and executives in stock options and restricted shares will find it simpler to report the related tax deductions starting at the end of this year. Under fixed intrinsic value accounting, the "spread" of a stock option (i.e., the amount by which the fair market value of the stock at the time of grant exceeds the exercise price) must be expensed over the vesting period of the stock option. If the spread is zero, no expense needs to be recognized.