In a recent IASB statement, Sir David Tweedie, IASB Chairman, said: “The wide-spread use of share options to pay employees, external advisors, and others; the calls from users of financial statements for improvements in accounting for these transactions; and the differing proposals emanating from national standard-setters demonstrate the importance of developing a high quality global accounting standard on share-based payment. There are, however, complex issues for the Board to consider -- in particular, how we can measure the value of employee share options? The Board hopes that inviting additional comment on the Discussion Paper, published by our predecessor organization, will provide the Board with further insight into these issues. We also expect that it will be useful to constituents as they focus on the accounting issues involved.”

Comments on the July 2000 IASC Discussion Paper, produced in collaboration with other leading national standard-setters, were received from constituents around the world during the original comment period, which ended October 31, 2000.

The IASB re-opened the comment period, concerned that some constituents might not have reponded to the Discussion Paper, "perhaps not realizing the growing international importance of the issue, at that time," the IASB said.

Additional comments on the Discussion Paper are invited by December 15 to IASB’s email address: commentletters@iasb.org.uk . Respondents should focus their attention on the questions for respondents set out in the Discussion Paper, in particular, the questions relating to measurement issues, said the IASB.

Due to the worldwide concern over the subject, the Board intends to continue its discussions relating to the project over the next few months, but all conclusions reached will be tentative and subject to reconsideration in the light of additional comments received.

According to the IASB, the current objective of the project is to develop an Exposure Draft (ED) of an International Financial Reporting Standard (IFRS), which the IASB hopes could be ready for publication by mid 2002.

Copies of the Discussion Paper, Accounting for Share-based Payment, is available at the IASB Web site for $23 (US).

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