Options Modifications or Cancellations: Which is more appropriate? Synopsis: In many situations, companies face a decision related to how changing market conditions or how personal circumstances of employees may impact the employee stock options plans in the company. The accounting treatment of these modifications is sometimes a significant challenge, as it involves the complex accounting topic of “variable accounting of stock-based compensation”. This paper addresses the different types of employee stock option modifications, and the accounting treatment of each. In addition, the paper compares the modification versus re-issuance of the options from a financial impact perspective. Publication Year: 2008 File Size, Format and Number of Pages: 172 KB, PDF, 9 pages
		Lattice or Black-Scholes: That is the question... Synopsis: With the introduction of FAS123(R), many companies are struggling with which option pricing model to use for expensing their options. And FAS123(R) is not helping: it leaves the choice of the pricing model to the reporting issuers. This article compares the two main methods of pricing options that are addressed in FAS123(R), and at the end of the article, provides a simple check list through which the reader can determine which method would be ideal to use for his/her company. The two methods for pricing options are either the Black-Scholes (also sometimes called Black- Scholes-Merton) method or the Lattice/Binomial method. Publication Year: 2007 File Size, Format and Number of Pages: 63 KB, PDF, 3 pages
		Employee Stock Option Exercising Alternatives Synopsis: One of the challenging decisions that companies have to make related to their stock-based compensation is the method by which they structure the exercise of their employee stock options. This challenge emanates from the desire to manage the trade-offs and optimize the aggregate objectives of both the company and the employees. This paper looks at the different methods of exercising employee stock options, and compares them from both the financial and HR perspectives. The paper concludes by providing a decision tree that the reader can use to determine the employee stock option exercising method that is most suitable for his/her company. Publication Year: 2007 File Size, Format and Number of Pages: 145 KB, PDF, 8 pages
		The Perils of Consultant Options and Variable Accounting Synopsis: Granting options to full-time employees or to consultants is a dimension into which “employee” stock options can be categorized. This difference, although from the surface seems to be insignificant, has a significant impact on how options are accounted for from a financial perspective. This paper addresses how to account for “consultant” options, and the complexities associated with such option grants. In addition, the paper also touches upon how consultant options compare to liability-type stock-based compensation instruments. Publication Year: 2007 File Size, Format and Number of Pages: 222 KB, PDF, 9 pages
		Accounting for Performance Options Synopsis: Employee stock option plans can be categorized in multiple dimensions, one of which is whether there are performance criteria associated with the stock option grants or not. This paper focuses on employee stock options with performance criteria, the HR aspects associated with these option grants, and how to account for them from a financial perspective. Publication Year: 2007 File Size, Format and Number of Pages: 105 KB, PDF, 8 pages
		Naked Puts – Risky or Not? A Simplified Guide to Options Investing Synopsis: This novella tells how Michael Kennedy, the protagonist, was struggling with his financial investment decisions, and how he successfully used options as an investment vehicle. Through an entertaining story, practical real world applications are presented. Excerpt: The first step is to assess your situation by determining the above four factors. The next step is to determine the investment strategy that will help you fulfill your requirements. If options investment is part of your strategy, you will then have to determine three things: which options strategy will best suit you, the expiry dates of the options, and the exercise prices of the options. Options investing, without the proper discipline, can be very risky. Assessing your financial situation is the first step towards successful options investing... Publication Year: 2006 File Size, Format and Number of Pages: 735 KB, PDF, 177 pages
		International Financial Reporting Standards (IFRS) for North America Synopsis: The presentation of December 12, 2008: IFRS Project Success, by Deloitte and SyncBASE. Excerpt: A principles-based approach that places emphasis on interpretation and judgment. Greater use of fair value as a measurement basis, increasing focus on obtaining reliable measurements. Less detailed accounting guidance and greater attention paid to the process of arriving at accounting conclusions. Publication Year: 2008 File Size, Format and Number of Pages: 877 KB, PDF, 36 pages

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