FASB Offers More Guidance on Stock Options
In March 2000, FASB released an interpretation on several implementation issues related to APB Opinion no. 25 on accounting for stock issued to employees. The guidance defined the term employee for purposes of applying the opinion and clarified accounting for options that have been repriced. When a company directly or indirectly reprices its stock options, it changes the terms of its stock compensation plan under the opinion, making it a variable plan. This article deals with equities and stocks.