Sir Nigel Rudd, chairman of the Confederation of British Industry’s committee on boardroom affairs, said he broadly agreed that the issuing of stock options was a ‘cost to the company’, the FT reported today.
Sir Nigel who is also chairman elect of high-street chemist Boots and a non-executive director of Barclays, said accountants had become ‘pretty sophisticated’, adding ‘I just think disclosure is everything’.
A number of major global brands have already begun expensing stock options including Microsoft, Amazon.com and Coca-Cola.
The IASB is preparing a new set of financial reporting standards, including the deducting of stock options from profits.
Companies in Europe must adopt new accounting standards by 2005.
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The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
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