[Federal Register Volume 60, Number 245 (Thursday, December 21, 1995)]
[Rules and Regulations]
[Page 66072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31086]



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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 211

[Release No. SAB 95]


Staff Accounting Bulletin No. 95

AGENCY: Securities and Exchange Commission.

ACTION: Publication of Staff Accounting Bulletin.

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SUMMARY: This staff accounting bulletin rescinds the views of the staff 
contained in Staff Accounting Bulletin No. 57 (Topic 5K--Contingent 
Stock Purchase Warrants).

DATES: December 15, 1995.

FOR FURTHER INFORMATION CONTACT: Michael Morrissey, Office of the Chief 
Accountant (202) 942-4400, or Douglas Tanner, Division of Corporation 
Finance (202) 942-2960, Securities and Exchange Commission, 450 Fifth 
Street N.W., Washington, D.C. 20549.

SUPPLEMENTARY INFORMATION: The statements in staff accounting bulletins 
are not rules or interpretations of the Commission nor are they 
published as bearing the Commission's official approval. They represent 
interpretations and practices followed by the Division of Corporation 
Finance and the Office of the Chief Accountant in administering the 
disclosure requirements of the Federal securities laws.
Margaret H. McFarland,
Deputy Secretary.

    Accordingly, Part 211 of Title 17 of the Code of Federal 
Regulations is amended by adding Staff Accounting Bulletin No. 95 to 
the table found in Subpart B.

PART 211--[AMENDED]

Staff Accounting Bulletin No. 95

    The staff hereby deletes Staff Accounting Bulletin No. 57 (Section 
K to Topic 5 of the Staff Accounting Bulletin Series). Staff Accounting 
Bulletin No. 57 provided interpretative guidance on the accounting for 
contingent stock purchase warrants.
    Footnote 2 to Staff Accounting Bulletin No. 57 notes that in March 
1984, the Financial Accounting Standards Board (FASB) added a project 
to its agenda to reconsider Accounting Principles Board Opinion No. 25, 
Accounting for Stock Issued to Employees (APB 25). Footnote 2 indicates 
that when this project is completed, the staff will consider whether 
the accounting articulated in this staff accounting bulletin is still 
appropriate.
    The FASB's reconsideration of APB 25 is now complete with the 
issuance of Statement of Financial Accounting Standards No. 123, 
Accounting for Stock-Based Compensation (FAS 123). Consistent with our 
stated intention, the staff has reconsidered the guidance in Staff 
Accounting Bulletin No. 57 and concludes that the interpretative 
guidance providing for an intrinsic value measurement is no longer 
necessary due to the general guidance in FAS 123 that provides for fair 
value measurement for transactions with other than employees.
    FAS 123 does not provide specific guidance on the methodology for 
determining fair value for such an arrangement or the measurement date 
on which the fair value of the equity instrument is determined. The 
staff intends to request that the Emerging Issues Task Force consider 
the need to issue additional guidance that would address those issues.

[FR Doc. 95-31086 Filed 12-20-95; 8:45 am]
BILLING CODE 8010-01-P