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This excerpt taken from the BP 6-K filed Nov 17, 2005. Share options: In December 2004, the FASB issued Statement of Financial Accounting Standards No. 123 (revised 2004) ‘Share-Based Payment’ (SFAS 123R). SFAS 123R, which is a revision of Statement of Financial Accounting Standards No. 123 ‘Accounting for Stock-Based Compensation’ (SFAS 123), supersedes APB Opinion No. 25 ‘Accounting for Stock Issued to Employees’. Under SFAS 123R, share-based payments to employees and others are required to be recognized in the income statement based on their fair value. Pro forma disclosure is no longer a permitted alternative.
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BP p.l.c. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
Note 16 - US generally accepted accounting principles - continued
Impact of new US accounting standards – continued
Effective January 1, 2005, as part of the adoption of IFRS, the Group adopted International Financial Reporting Standard 2 ‘Share-based Payment’ (IFRS 2). IFRS 2 requires the recognition of expense when goods or services are received from employees or others in consideration for equity instruments or amounts that are based on the value of an entity's equity instruments. The recognition and measurement provisions of IFRS 2 are similar to those of SFAS 123R.
In adopting IFRS 2, the Company elected to restate prior period results to recognize the expense associated with equity-settled share-based payment transactions that were not fully vested as January 1, 2003 and the liability associated with cash-settled share-based payment transactions as of January 1, 2003.
The Group adopted SFAS 123R with effect from January 1, 2005.
This excerpt taken from the BP 6-K filed Sep 7, 2005. Share options:
In December 2004, the FASB issued Statement of Financial Accounting
Standards No. 123 (revised 2004) ‘Share-Based Payment’ (SFAS 123R). SFAS
123R, which is a revision of Statement of Financial Accounting Standards No. 123
‘Accounting for Stock-Based Compensation’ (SFAS 123), supersedes APB Opinion No. 25
‘Accounting for Stock Issued to Employees’. Under SFAS 123R, share-based
payments to employees and others are required to be recognized in the income
statement based on their fair value. Pro forma disclosure is no longer a
permitted alternative.
51
Effective January 1, 2005, as part of the adoption of IFRS, the Group adopted International Financial Reporting Standard 2 ‘Share-based Payment’ (IFRS 2). IFRS 2 requires the recognition of expense when goods or services are received from employees or others in consideration for equity instruments or amounts that are based on the value of an entity’s equity instruments. The recognition and measurement provisions of IFRS 2 are similar to those of SFAS 123R.
In adopting IFRS 2, the Company elected to restate prior period results to recognize the expense associated with equity-settled share-based payment transactions that were not fully vested as January 1, 2003 and the liability associated with cash-settled share-based payment transactions as of January 1, 2003.
The Group adopted SFAS 123R with effect from January 1, 2005.
This excerpt taken from the BP 6-K filed Sep 7, 2005. Share options: In December 2004, the FASB issued
Statement of Financial Accounting Standards No. 123 (revised 2004) ‘Share-Based
Payment’ (SFAS 123R). SFAS 123R, which is a revision of Statement of
Financial Accounting Standards No. 123 ‘Accounting for Stock-Based
Compensation’ (SFAS 123), supersedes APB Opinion No. 25 ‘Accounting
for Stock Issued to Employees’. Under SFAS 123R, share-based payments to
employees and others are required to be recognized in the income statement
based on their fair value. Pro forma disclosure is no longer a permitted
alternative.
46
Effective January 1, 2005, as part of the adoption of IFRS, the Group adopted International Financial Reporting Standard No. 2 ‘Share-based Payment’ (IFRS 2). IFRS 2 requires the recognition of expense when goods or services are received from employees or others in consideration for equity instruments or amounts that are based on the value of an entity’s equity instruments. The recognition and measurement provisions of IFRS 2 are similar to those of SFAS 123R.
In adopting IFRS 2, the Group elected to restate prior period results to recognize the expense associated with equity-settled share-based payment transactions that were not fully vested as of January 1, 2003 and the liability associated with cash-settled share-based payment transactions as of January 1, 2003.
The Group adopted SFAS 123R with effect from January 1, 2005. Refer to Note 3 and the heading ‘First-time Adoption of International Financial Reporting Standards’ for further discussion regarding the Group’s accounting for share-based payments and the adoption of IFRS 2.
This excerpt taken from the BP 6-K filed Apr 13, 2005. Share options: In December 2004, the FASB issued Statement of Financial Accounting Standards No. 123 (revised 2004) ‘Share-Based Payment’ (SFAS 123R). SFAS 123R, which is a revision of Statement of Financial Accounting Standards No. 123 ‘Accounting for Stock-Based Compensation’ (SFAS 123), supersedes APB Opinion No. 25 ‘Accounting for Stock Issued to Employees’. Under SFAS 123R, share-based payments to employees and others are required to be recognized in the income statement based on their fair value. Pro forma disclosure is no longer a permitted alternative. SFAS 123R must be adopted no later than July 1, 2005.
The Company currently accounts for share-based employee compensation based on the intrinsic value method and, as such, generally recognizes no compensation cost for employee share options. Disclosure of the pro forma effect on net income and earnings per share if the Company had applied the fair value recognition provisions of SFAS 123 to share-based employee compensation in prior years is included in Note 14.
Effective January 1, 2005, as part of the adoption of IFRS, the Group adopted International Financial Reporting Standard 2 ‘Share-based Payment’ (IFRS 2). IFRS 2 requires the recognition of expense when goods or services are received from employees or others in consideration for equity instruments or amounts that are based on the value of an entity's equity instruments. The recognition and measurement provisions of IFRS 2 are similar to those of SFAS 123R.
- 49 -
BP p.l.c. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
Note 16 - US generally accepted accounting principles - continued
Impact of new US accounting standards – continued
In adopting IFRS 2, the Company elected to restate prior years to recognize the expense associated with equity-settled share-based payment transactions that were not fully vested as January 1, 2003 and the liability associated with cash-settled share-based payment transactions as of January 1, 2003.
The Company adopted SFAS 123R with effect from January 1, 2005. Had the Company adopted SFAS 123R in prior years, the impact would have approximated the pro forma expense included in Note 14.
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