Coke to test stock options standard
Beverage giant Coca-Cola is one of a number of public companies in the US that has signed up to 'road test' plans to force companies to expense stock options.
Coca-Cola will help the Financial Accounting Standards Board, the US standard setter, solve the issue of how to value stock options.
It will assess the potential costs and benefits from expensing stock options.
FASB has decided that companies should deduct the costs of stock options from their earnings statements and is now working on how to measure the value of those options as part of a standard it expects to propose early next year.
This standard is similar in nature to proposals put forward by its global counterpart, the International Accounting Standards Board, and is expected to form part of International Financial Reporting Standards, due out in 2005.