PracticeAuditIT giant reviews share options policy

IT giant reviews share options policy

Semiconductor company ARM, is reviewing the possibility of booking the cost of its share options to its accounts, potentially knocking as much as a third off its profits.

If the former FTSE-100 company goes ahead with the radical accounting changeit will be the first UK company to make the move.

Robin Saxby, ARM chief executive, is expected to announce the decision whenthe technology group reports second-quarter profits on Tuesday.

A spokeswoman for the company said the issue ‘was under review’.

The news comes following the International Accounting Standards Board’sannouncement last week to issue a draft rule on accounting for share optionsin the autumn despite fierce opposition from UK and US companies.

Technology companies in particular have shown strong resistance to a newrule because they have increasingly used share options as a way ofremunerating suppliers as well as staff.

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