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Accounting for Stock Options
Effective January 1, 2006, the FASB required that all stock options granted to employees need to be accounted for using a fair value approach. This expense will then be recognized in the income statement. Options issued previously, for the most part, will NOT need to be re-valued. Plante & Moran's accounting team can assist you through the transition of this new pronouncement and understanding the inner workings of SFAS 123R.
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