Issued in October 1972, APBO
25 concluded that if the quantity of shares and the exercise price were known on the date of grant (i.e., the only restriction on the employee's economic entitlement was the imposition of a time-vesting schedule while still employed by the company), the measurement date was the date of grant.
In December 2002, in response to requests by companies that are switching from APBO
25 methods to the preferred method under SFAS 123, FASB issued SFAS 148 to amend the transition provisions and footnote disclosure rules of SFAS 123.
* A change to or from the full cost method in the extractive industries (APBO
The Accounting Principles Board (APB) established GAAP for stock option plans by the issuance of APBO
The proposed standard also provides accounting guidance relating to 1) modifications to the terms of grants under stock compensation plans, 2) accounting for tax consequences of temporary differences resulting from stock compensation plans, and 3) implications of the new accounting rules on earnings-per-share calculations required under APBO
First, changing the average retirement age to 64.5 does not show a material difference in accrual numbers (APBO
, service cost, and annual expense), but cash flow is reduced by 2.3%.
Analogies can be drawn between practice as it relates to APBO
21 and other areas.
Note that the term "service lives" was carried forward from APBO
20 into SFAS 154 and continues to appear in FASB.
* Asset exchanges APBO
29 does not recognize a gain on the exchange of similar productive assets, unless cash is received in exchange.
FAS 141provides more guidance for determining the acquiring entity than APBO