CPTS » Topics » Recent Accounting Requirements

This excerpt taken from the CPTS 10-Q filed Nov 9, 2005.

Recent Accounting Requirements

 

In December 2004, FASB issued SFAS No. 123(R), “Share-Based Payment” (revised 2004) (“SFAS No. 123 (R)”). The provisions of SFAS No. 123(R) will require the Company to measure all stock-based compensation awards using a fair value method and record such expense in the consolidated financial statements, including grants of employee stock options.  In addition, the adoption of SFAS No. 123(R) will require additional accounting related to the income tax effects and additional disclosure regarding the cash flow effects resulting from share-based payment arrangements. SFAS No. 123(R) is effective for all public companies for annual periods beginning after June 15, 2005.  The Company will adopt SFAS 123(R) effective January 1, 2006.  The Company has not yet determined whether the adoption of SFAS No. 123(R) will result in amounts that are similar to the current pro forma disclosures under SFAS No. 123.  The Company is evaluating the requirements for SFAS No. 123(R) and expects the adoption to have a significant adverse impact on the statement of operations and net loss per share.

 

In March 2005, the SEC issued Staff Accounting Bulletin (“SAB”) No. 107 (“SAB 107”). SAB 107 provides guidance for the implementation of SFAS 123(R) with respect to valuation techniques, expected volatility

 

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and expected term for valuing employee stock options, among other matters. The provisions of SAB 107 will be effective for the Company at the time the Company adopts SFAS 123(R).

 

In May 2005, the FASB issued SFAS 154, “Accounting Changes and Error Corrections – a replacement of APB Opinion No. 20 and FASB Statement No. 3”. SFAS 154 requires retrospective application to prior periods’ financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change.  APB 20 previously required that most voluntary changes in accounting principle be recognized by including in net income of the period of the change the cumulative effect of the changing to the new accounting principle. The statement is effective for fiscal years beginning after December 15, 2005.  The Company has evaluated the impact of the adoption of SFAS 154, and does not believe the impact will be significant to the Company’s overall results of operations or financial position.

 

This excerpt taken from the CPTS 10-Q filed Jul 29, 2005.

Recent Accounting Requirements

 

In December 2004, FASB issued SFAS No. 123(R), “Share-Based Payment” (revised 2004) (“SFAS No. 123 (R)”). The provisions of SFAS No. 123(R) will require the Company to measure all stock-based compensation awards using a fair value method and record such expense in the consolidated financial statements, including grants of employee stock options.  In addition, the adoption of SFAS No. 123(R) will require additional accounting related to the income tax effects and additional disclosure regarding the cash flow effects resulting from share-based payment arrangements. SFAS No. 123(R) is effective for all public companies for annual periods beginning after June 15, 2005.  The Company will adopt SFAS 123(R) effective January 1, 2006.  The Company has not yet determined whether the adoption of SFAS No. 123(R) will result in amounts that are similar to the current pro forma disclosures under SFAS No. 123.  The Company is evaluating the requirements for SFAS No. 123(R) and expects the adoption to have a significant adverse impact on the statement of operations and net loss per share.

 

In March 2005, the SEC issued Staff Accounting Bulletin (“SAB”) No. 107 (“SAB 107”). SAB 107 provides guidance for the implementation of SFAS 123(R) with respect to valuation techniques, expected volatility and expected term for valuing employee stock options among other matters. The provisions of SAB 107 will be effective for the Company at the time the Company adopts SFAS 123(R).

 

In May 2005, the FASB issued SFAS 154, “Accounting Changes and Error Corrections – a replacement of APB Opinion No. 20 and FASB Statement No. 3”. SFAS 154 requires retrospective application to prior periods’ financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change.  APB 20 previously required that most voluntary changes in

 

8



 

accounting principle be recognized by including in net income of the period of the change the cumulative effect of the changing to the new accounting principle. The statement is effective for fiscal years beginning after December 15, 2005.  The Company has evaluated the impact of the adoption of SFAS 154, and does not believe the impact will be significant to the Company’s overall results of operations or financial position.

 

EXCERPTS ON THIS PAGE:

10-Q
Nov 9, 2005
10-Q
Jul 29, 2005

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