The Securities and Exchange Commission's Office of the Chief Accountant and Division of Corporation Finance have released a staff accounting bulletin intended to help public companies value stock option grants to employees on their income statements.
Under SAB 110, eligible public companies can continue to use a simplified method for estimating stock option expenses if their own historical experience doesn't provide enough stock option exercise data. That ability was provided in SAB 107 nearly three years ago. SAB 110 extends this ability, which otherwise would have expired Dec. 31, 2007. The extension will mainly help small public companies that lack much historical exercise data.
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