subpage banner

Press Releases

CCDG Media Release: Council on Corporate Disclosure and Governance Consultation Paper on Accounting for Stock Options

24 Feb 2003

1. The Council on Corporate Disclosure and Governance ("CCDG") is seeking public feedback on whether Singapore companies should treat stock options as an expense at the point of grant. This requirement was proposed in a recent Exposure Draft ("ED") from the International Accounting Standards Board ("IASB").


2. Currently, companies do not need to recognise stock options issued as an expense in their profit and loss accounts at the point of grant. They only need to disclose the employee stock options issued. Most companies would recognise the employee stock options as an expense when the employees exercise the options.

3. The responses towards the expensing of stock options at the point of grant have been mixed. Supporters of the proposal commented that this would level the playing field between companies which issue employee stock options and companies which pay cash to their employees. It would also make companies more prudent in granting stock options to their employees. However, others who are against the idea argued that it could discourage entrepreneurship and start-ups in Singapore.

Public Consultation

4. The public consultation paper is posted at the CCDG website (a copy of the paper is attached as Appendix). Interested parties are invited to provide their comments and feedback on the consultation paper via email to or via fax to 63374134.

Appendix:Consultation paper on accounting for stock options