FASB Delays Date for Issuing Options and Other Equity Pay Expensing Rules

The Financial Accounting Standards Board (FASB) has delayed the date it intends to issue proposed rules for expensing stock options and other equity compensation until the first quarter next year, with final rules then due out in the third quarter. The move conforms with a recent announcement by the International Accounting Standards Board that it will also delay the issuance of proposed rules until the summer of 2004. During its September 10 discussion, there was also an indication that a model other then Black-Scholes might emerge as the preferred expensing approach.