IASB Postpones Decision on Equity Accounting Rules

The International Accounting Standards Board (IASB) has postponed issuing standards for equity based compensation until the end of July 2004. It had been anticipated that a decision could be reached by the end of 2003. This will probably mean a similar delay in any final guidelines from the U.S. Financial Accounting Standards Board (FASB). The delay is over technical matters in how to write the final rules, not a change in the IASB's position that equity compensation should show as a compensation cost. Intense pressure on the IASB continues, however, especially on the issue of exempting broad-based plans. So far, however, there is little reason to expect that effort will succeed.