ELSE » Topics » Accounting for Stock Issued to Employees

These excerpts taken from the ELSE 10-K filed Mar 23, 2009.
Accounting for Stock Issued to Employees, and instead generally requires that such transactions be accounted for using a fair-value-based method. In accordance with the modified-prospective transition method, the Company’s financial statements for prior periods have not been restated to reflect the impact of SFAS No. 123R. The Company uses the Black-Scholes-Merton (“BSM”) option-pricing model to determine the fair-value of stock-based awards.

 

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the BSM model with the assumptions included in the table below. The Company uses historical data among other factors to estimate the expected price volatility, the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. At December 31, 2008, the Company had one stock-based employee compensation plan. There were no option grants during 2008. During the year ended December 31, 2007, the Company issued 5,000 common share options.

 

The assumptions made in estimating the fair value of the options on the grant date based upon the BSM option-pricing model are as follows for 2007:

 

Dividend yield

0.00%

Expected volatility

36.74%

Risk free interest rate

4.93%

Expected lives

10 years

 

Accounting for Stock Issued to Employees, and instead generally requires that such transactions be accounted for using a fair-value-based method. In accordance with the modified-prospective transition method, the Company’s financial statements for prior periods have not been restated to reflect the impact of SFAS No. 123R. The Company uses the Black-Scholes-Merton (“BSM”) option-pricing model to determine the fair-value of stock-based awards.

 

The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the BSM model with the assumptions included in the table below. The Company uses historical data among other factors to estimate the expected price volatility, the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. At December 31, 2008, the Company had one stock-based employee compensation plan. There were no option grants during 2008. During the year ended December 31, 2007, the Company issued 5,000 common share options.

 

The assumptions made in estimating the fair value of the options on the grant date based upon the BSM option-pricing model are as follows for 2007:

 

Dividend yield

0.00%

Expected volatility

36.74%

Risk free interest rate

4.93%

Expected lives

10 years

 

Accounting for Stock Issued to
Employees
, and instead generally requires that such transactions be accounted for using a fair-value-based method. In accordance with the modified-prospective transition method, the Company’s financial statements for prior periods have not been restated to reflect the impact of SFAS No. 123R. The Company uses the Black-Scholes-Merton (“BSM”) option-pricing model to determine the fair-value of stock-based awards.



 



The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the BSM model with the assumptions included in the table below. The Company uses historical data among other factors to estimate the expected price volatility, the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. At December 31, 2008, the Company had one stock-based employee compensation plan. There were no option grants during 2008. During the year ended December 31, 2007, the Company issued 5,000 common share options.



 



The assumptions made in estimating the fair value of the options on the grant date based upon the BSM option-pricing model are as follows for 2007:



 



























Dividend yield


0.00%


Expected volatility


36.74%


Risk free interest rate

valign=bottom >

4.93%


Expected lives


10 years




 



Accounting for Stock Issued to
Employees
, and instead generally requires that such transactions be accounted for using a fair-value-based method. In accordance with the modified-prospective transition method, the Company’s financial statements for prior periods have not been restated to reflect the impact of SFAS No. 123R. The Company uses the Black-Scholes-Merton (“BSM”) option-pricing model to determine the fair-value of stock-based awards.



 



The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the BSM model with the assumptions included in the table below. The Company uses historical data among other factors to estimate the expected price volatility, the expected option life and the expected forfeiture rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. At December 31, 2008, the Company had one stock-based employee compensation plan. There were no option grants during 2008. During the year ended December 31, 2007, the Company issued 5,000 common share options.



 



The assumptions made in estimating the fair value of the options on the grant date based upon the BSM option-pricing model are as follows for 2007:



 



























Dividend yield


0.00%


Expected volatility


36.74%


Risk free interest rate

valign=bottom >

4.93%


Expected lives


10 years




 



EXCERPTS ON THIS PAGE:

10-K (4 sections)
Mar 23, 2009

"Accounting for Stock Issued to Employees" elsewhere:

Harvard Bioscience (HBIO)
MOCON (MOCO)
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