SFAS 123R - Stay of execution

Washington, D.C., April 14, 2005 - The Securities and Exchange Commission announced today the adoption of a new rule that amends the compliance dates for Financial Accounting Standards Board's Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment (Statement No. 123R).

Snip

The Commission's new rule allows companies to implement Statement No. 123R at the beginning of their next fiscal year, instead of the next reporting period, that begins after June 15, 2005, or Dec. 15, 2005 for small business issuers. This means, for example, that the financial statements for a calendar year-end company do not need to comply with Statement No. 123R until the interim financial statements for the first quarter of 2006 are filed with the Commission. The financial statements for a company, other than a small business issuer, with a June 30 year-end, however, must comply with Statement No. 123R when the interim financial statements for the quarter beginning July 1, 2005 are filed with the Commission.

Read the release here.

Hat tip to AAO Weblog and quoting therefrom:

There’s a delicious irony in that as well: the tech sector, which has been so lathered up about option compensation expense, gets what it wished for - a delay - but the delay won’t apply to many of them because they routinely have fiscal year ends.

NOTE:

Rambus will commence reporting under SFAS 123R when it files its interim fanancial statements for the first quarter of 2006 with the Commission.