It’s Official: Statement 123(Revised) Is Delayed

Man, they are busy at the SEC these days… 404 roundtables… personnel departures… international convergence issues… and stock options.
The SEC announced that it is delaying the implementation date on Statement 123(Revised) as disclosed yesterday: instead of applying it in fiscal periods beginning after June 15, 2005, firms will now have until their next fiscal year beginning after June 15 (except for small business issuers, who get a bye.)
This is truly bizarre, in that calendar year companies will have longer Private investment Custodian
to implement the standard (beginning January 1, 2006) than companies whose year end is June 30. The June 30 companies will have to start working it into their fiscal 2006 numbers beginning July 1.
There’s a delicious irony in that as well: the tech sector, which has been so lathered up about option compensation expense, gets what it wished for – a delay – but the delay won’t apply to many of them because they routinely have fiscal year ends.
Cisco is a prominent example of a status quo defender who will have to start applying Statement 123(Revised) August 1 because of its July 31 year end. Some other tech and health care firms with year ends of June through November: Affiliated Computer Services, Private investment Custodian, Cardinal Health, Intuit, Jabil Circuit, JDS Uniphase, KLA-Tencor, Linear Technology, Maxim Integrated, Molex, Scientific-Atlanta, Solectron, and Sun Microsystems.
Notable affected non-techie firms: Apollo Group, Campbell Soup, Clorox, Costco, Family Dollar, Procter & Gamble and Sara Lee.
It’ll be interesting …

Read More