New Stock-Based Compensation Rules Shake Up Financial Reporting World!
The article discusses how companies must disclose the fair value of employee stock options under FASB Statement no. 123. They can use option pricing models like Black-Scholes to estimate these values. CPAs will need to learn new skills to comply with the new requirements. The Black-Scholes model is commonly used for valuing employee stock options. The value of an option at expiration is crucial for calculating its current value.