FAS 123 (R) Greek to Me

Hi all, I’m finding this reading rather confusing as it doesn’t explain FAS 123 in the first place and expect you to compare with the revised one. I’m not in the accounting practice so have little knowledge on it. Can anyone help as to how to go about this reading? There wasn’t a clear topic on FRS 123 in level one apart from informing that Employee stock based options needed to be expensed in the income statement. Thanks in advance

FAS 123 isn’t really a revision but a sea change - FAS 123 came out about 10 years ago and was not very effective at getting anybody to account for options in a realistic way. Just to pretend that FAS 123® is the original and you’ll be fine (or check out FAS 123 on the web somewhere).

Thanks Joey. I’ll google it then. Any recommendation on some user friendly and easy to digest resource? Regards

Not really but (it hurts me to say this) accountants are pretty good at putting stuff like journal articles on the web.

how come in equity reading 40, it states in the last paragraph on page 119 “currently, IAS, as well as the US GAAP, does not require that an expense be recorded for the value of options” ?? they are obviously expensed!

So crumming around the Internet I found this great article about the differences between FAS 123® and FAS 123 as well as other stuff. http://www.towersperrin.com/tp/getwebcachedoc?webc=HRS/USA/2005/200511/2005_expensing.pdf I don’t like my answer above now because the key difference between FAS 123 and FAS 123® is that FAS 123 didn’t require fair value accounting so everyone went to the intrinsic value standard of APB 25. Frankly, I thought APB 25 was FAS 123 so the standards laid out in APB 25 were laid out in FAS 123. What really happened is that FAS 123 was irrelevant in the places it mattered most and they have fixed that with FAS 123®.