New Equity-Based Compensation Accounting Standard Issued by the Financial Accounting Standards Board (FASB)
20 Décembre 2004 - 5:21PM
PR Newswire (US)
New Equity-Based Compensation Accounting Standard Issued by the
Financial Accounting Standards Board (FASB) Fair Value Accounting
Standard Will Count Options as Business Expenses Starting in 2005;
Major Impact on Earnings and Implications for Incentive Plan Design
CHICAGO, Dec. 20 /PRNewswire/ -- On December 16, 2004, the
Financial Accounting Standards Board (FASB) unveiled its new
accounting standard for calculating the fair value of stock
options. FAS123(R) will force companies to begin treating employee
stock options in the same way salaries or cash bonuses are counted.
(Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO )
Currently, the vast majority of companies calculate stock option
cost using the Black-Scholes model. However, FASB's statement
suggests that a binomial or "lattice" model is more capable of
fully reflecting certain characteristics of employee share options,
although it does not state a preference for the binomial or lattice
model. FAS123(R) continues to stress that understanding early
exercise behavior by option holders is important to valuing
employee stock options properly. Philip A. Peterson, F.S.A., and
Mike Savage, senior vice presidents with Aon Consulting, are
available to comment on and explain FAS 123(R) and its effect on
U.S. businesses as well as: -- The influence new regulations could
have on stock options, stock awards and employee stock purchase
plans -- The implications of using a binomial or "lattice"
methodology versus the existing Black-Scholes model -- The
incentive for U.S. companies raising capital abroad to adopt the
binomial model -- Implications on long term incentive plan design
for executives To arrange an interview with Mr. Peterson or Mr.
Savage, contact: Dana Sohn, Aon Consulting, +1.312.381.4786, or
Bianca Wright, RF Binder Partners, +1.212.994.7545, About Aon Aon
Corporation ( http://www.aon.com/ ) is a leading provider of risk
management services, insurance and reinsurance brokerage, human
capital and management consulting, and specialty insurance
underwriting. The company employs approximately 51,000
professionals in its 600 offices in more than 120 countries. Backed
by broad resources, industry knowledge and technical expertise, Aon
professionals help a wide range of clients develop effective risk
management and workforce productivity solutions. Aon Consulting is
among the top global human resources consulting firms, with 2003
revenues of $1.185 billion and 7,500 professionals in 140 offices
throughout the world. Aon Consulting delivers integrated consulting
solutions to help clients with employee benefits, human resources
outsourcing, compensation, communication and management consulting.
This press release contains certain statements relating to future
results, which are forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from either historical or anticipated results, depending on a
variety of factors. Potential factors that could impact results
include the general economic conditions in different countries
around the world, fluctuations in global equity and fixed income
markets, exchange rates, rating agency actions, pension funding,
ultimate paid claims may be different from actuarial estimates and
actuarial estimates may change over time, changes in commercial
property and casualty markets and commercial premium rates, the
competitive environment, the actual costs of resolution of
contingent liabilities and other loss contingencies, the heightened
level of potential errors and omissions liability arising from
placements of complex policies and sophisticated reinsurance
arrangements in an insurance market in which insurer reserves are
under pressure, and the timing and resolution of related insurance
and reinsurance issues relating to the events of September 11,
2001. Further information concerning the Company and its business,
including factors that potentially could materially affect the
Company's financial results, is contained in the Company's filings
with the Securities and Exchange Commission.
http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO
http://photoarchive.ap.org/ DATASOURCE: Aon Consulting CONTACT:
Dana Sohn of Aon Consulting, +1-312-381-4786, , or Bianca Wright of
RF Binder Partners, +1-212-994-7545, Web site: http://www.aon.com/
Copyright