SEC Votes to Delay Options Expensing

As expected, the Securities and Exchange Commission on Thursday gave some companies a reprieve before they have to begin treating employee stock options as expenses, an accounting move that will cut profit.

SEC commissioners voted to delay the implementation of options expensing until the start of a company’s first fiscal year after June 15. Under the Financial Accounting Standards Board’s current rule, the accounting change would have started with the first fiscal quarter after that date.

“Implementing the new standard at the beginning of a fiscal year allows companies to change their accounting systems in a more orderly fashion, and should allow auditors to conduct more consistent audit,” the SEC’s Donald Nicolaisen said.