This excerpt taken from the WBMD 10-K filed Mar 16, 2006.
We expect that accounting for employee stock options using the fair value method will have a material impact on our consolidated results of operations and earnings per share
In December 2004, the FASB issued SFAS 123R, which requires all share-based payments to employees, including grants of stock options by us and Emdeon to our employees, to be recognized in the financial statements based on their fair values, beginning with the fiscal year that begins after June 15, 2005. As permitted by SFAS No. 123, we accounted for share-based payments to employees using the intrinsic value method prescribed in APB Opinion No. 25 for all prior year periods. We adopted SFAS 123R on January 1, 2006. See Note 2 to the audited Consolidated Financial Statements included in this Annual Report for more information regarding accounting for stock-based compensation plans.
As described in Note 2 to the audited Consolidated Financial Statements included in this Annual Report, we adopted the modified prospective transition method utilizing a standard option pricing model. The adoption of SFAS 123R will have a material impact on our consolidated results of operations and earnings per share in 2006.