Monday, December 31, 2007

Breaking News: SEC Staff Extends Use of the "Simplified" Method for Estimating a Stock Option's Expected Term

On December 21, 2007, the staff of the Securities and Exchange Commission published Staff Accounting Bulletin (SAB) 110, which amends SAB 107 to allow for the continued use, under certain circumstances, of the "simplified" method in developing an estimate of the expected term of so-called "plain vanilla" stock options accounted for under FAS 123R, Share-Based Payment.

A full article can be accessed on PwC's CFOdirect at http://cfodirect.pwc.com/CFODirectWeb/Controller.jpf?ContentCode=THUG-7A4UWS&ContentType=Content

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SAB 110 can be accessed on the SEC's website at http://www.sec.gov/news/press/2007/2007-267.htm.

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