The SEC has amended the compliance date for implementation of FAS 123R (“Share-Based Payments”). For affected public companies other than small-business issuers, the SEC’s action means that mandatory compliance with FAS 123R will be delayed until the first interim or annual reporting period of the company’s first fiscal year beginning on or after June 15, 2005 - i.e., the first quarter of 2006 for most public companies. Prior to the SEC’s action, FAS 123R was scheduled to take effect, in the case of public companies other than small-business issuers, for the first fiscal quarter beginning on or after June 15 - the third fiscal quarter of 2005 for calendar year companies. Calendar-year companies thus get a six-month reprieve. For June 30th year-end companies, FAS 123R will take effect as previously scheduled. The SEC’s action does not change the effective date for public companies that are small-business issuers. For those companies, FAS 123R remains effective as of the beginning of the first interim or annual reporting period that begins after December 15, 2005. The Release may be found by clicking here.
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