Backdating and spring loading stock options

However, we understand that some companies have accounted for their option grants using a measurement date that is other than the date at which all required granting actions have been completed.

Two such examples that we have become aware of are as follows.

Sam Ranzilla, Chairman Center for Public Company Audit Firms American Institute of Certified Public Accountants Harborside Financial Center 201 Plaza Three Jersey City, NJ 07311-3881 September 19, 2006 Dear Sirs: Several companies have recently issued press releases announcing the restatement of their financial statements due to errors in their accounting for grants of stock options to employees, members of the board of directors, and other service providers.The delay in completion of all required granting actions suggests that options terms may not have been final until the completion of those actions.Nonetheless, some companies that utilized the practices described above have asserted that the measurement date occurred before the required granting actions were completed because all option terms and recipients were final and known at an earlier date, and the completion of required granting actions represented only an administrative delay, rather than a period during which any of the terms of the award remained under consideration or subject to change.That is, we have not attempted to provide specific discussion on all possible combinations of issues that might arise.Therefore, companies may need to consider the views expressed in multiple sections of the letter.

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  1. Don't bother using this site, the staff won't help you. That's the "democracy" and "equality" they're so proud of promoting. :)I was a user from Spring of 2017 to February of 2018.