Stock options rule gets CBI support
Plans by the International Accounting Standards Board to force companies to expense stock options are being backed by a leading British think-tank.
Link: US group attacks IASB stock options rule
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.