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The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis. All posts prior to September, 2007 are in the public domain, but after September 4, 2007, only subscribers to The Analyst's Accounting Observer will see all posts going forward. Only selected, occasional posts will be released to the public domain from September 4 forward.

For Procrastinators Only: Compliance Tips On Statement 123 (Revised)
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Posted by: Jack Ciesielski 3/29/2005 7:50 AM
Associate Melissa Herboldsheimer turned up this tidbit from compensation consultants Pearl Meyer & Partners: a list of "10 Critical Steps Companies Should Take Today" to meet the pending implementation of Statement 123 (Revised).

Hello? It's March 29 - and firms should just now be figuring out the critical steps in implementing Statement 123 (Revised) in three more months? Section 404 reviews have certainly been a distraction, but interested parties should have seen this train coming for years.

The checklist is an excellent blueprint, for sure: chock full of detailed steps that every controller, CFO and HR honcho should have hashed out together many months ago, unless they were in full denial mode. And some of them are creepy but expected, in terms of earnings gamesmanship: "Build Your Case: Develop Assumptions -- Determine what works best for your company" and "Size the Problem: Projecting Your Expense/Dilution" kind of say it all.

Pearl Meyer is in the business of planning compensation plans: if they're issuing this kind of business-generating advice now, I'm wondering if it means they know just how unprepared firms really are. Any CFO who prints a copy of this checklist and starts worrying now should perhaps check this link and recite the creed. After all, there's still a full three months before the standard goes into effect.

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