Publication Date

1-1-1998

Document Type

Dissertation/Thesis

First Advisor

Simon, John

Degree Name

B.S. (Bachelor of Science)

Legacy Department

Department of Accountancy

Abstract

Statement of Financial Accounting Standards (SFAS) No. 123 is a new standard issued that introduces a fair method of accounting for stock-based compensation. The fair value can be determined using a pricing model, such as the Black- Scholes Model. Entities have the option to adopt SFAS 123 or continue using the intrinsic value method, prescribed by APB No. 25. If entities choose to continue using APB No. 25, they must disclose the pro forma effects of net income and earnings per share as if the fair value method had been used. SFAS 123 is effective for fiscal years that begin after December 15, 1995. The paper first discusses the implications of SFAS 123 and APB NO. 25. A sample of thirty companies in the manufacturing and computer industries is then analyzed to determine the compliance with the new standard.

Extent

26 pages

Language

eng

Publisher

Northern Illinois University

Rights Statement

In Copyright

Rights Statement 2

NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.

Media Type

Text

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