IASB Board Approves Staff Recommendations to Require Stock Plan Expensing

On July 16, the International Accounting Standards Board (IASB) approved recommendations from its staff that companies expense share-based compensation. The board vote was unanimous. Stock options would be expensed as of the date of grant, but the board has not yet issued proposed guidance on how the expensing would proceed. Other share-based compensation would also be subject to the new accounting standards. The IASB will now work to develop proposed mechanisms for the accounting; the would be released for public review before being finalized.