October 29, 2003 --  In an effort to have companies treat stock options as a form of compensation and to provide more uniform rules towards calculating and disclosure, the Financial Accounting Standards Board reached a decision towards mandating the expensing of stock options.   

The FASB concluded that, beginning 2005, it will be mandatory for companies to expense it’s stock options.  It also decided that only the “modified prospective” method will be allowed to calculate the expense.  Currently there are three allowed methods. 

It also agreed on the objectives of disclosure of stock option information, but has not yet identified specific disclosure requirements.  

The FASB is expected to provide for public comment sometime in early 2004, and expects to issue a final standard during the second half of 2004.