This second edition updates the June 20, 2005, publication of the Roadmap series and reflects all Statement 123(R) related authoritative guidance issued as of April 28, 2006. It includes more than 60 new questions and answers. As preparers delve more deeply into the intricacies of this statement, they are experiencing unforeseen complexity within it that relates to earnings per share, income tax accounting and liability classification issues. Much of our new interpretive guidance focuses on these areas. Our interpretations also incorporate the views of the Securities and Exchange Commission (SEC) staff as expressed in SEC Staff Accounting Bulletin Topic 14, “Share-Based Payment” (SAB 107), as well as subsequent clarifications of Emerging Issues Task Force Topic No. D-98, “Classification and Measurement of Redeemable Securities” (dealing with mezzanine equity treatment). Like our first edition, this publication contains other resource materials, including a Generally Accepted Accounting Principles accounting and disclosure checklist, to assist financial statement preparers in implementing and applying Statement 123(R).

We encourage you to contact the lead client service partner on your engagement or any Deloitte & Touche USA LLP office to explore further the accounting consequences of Statement 123(R).

View all issues in the Roadmap series.

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