The Financial Accounting Standards Board has promised guidance on a topic that has had stock plan administrators in a virtual panic for over a month.
Under language in FASB’s expensing standard related to the valuation of stock options, the date that the options are approved by a company’s board of directors would not necessarily be the grant date. Instead, the grant date would be the date at which an employer and an employee reach a mutual understanding of the key terms and conditions of the award.
