Valuing Options While Running the Compliance Gauntlet, Part II of II

摘要

It is important to note again the differences between FASB 123R and IRC Section 409A as they appear to be similar but approach the valuation of options and securities from different perspectives. FASB 123R concerns stock option valuations for financial reporting purposes and is measured from the issuing company's perspective. The objective is, in the case of privately-owned companies, to place a value on stock options in order to treat its value as an expense on an income statement.