Summary
ONEOK Inc. (OKE) announced on February 21, 2003, its decision to adopt the fair market value accounting method for stock options, as outlined in Statement of Financial Accounting Standards No. 123 (SFAS 123). This change will be effective for stock options granted on or after January 1, 2003. Consequently, all future employee stock grants will be recognized as expenses over their vesting periods, calculated based on the fair value at the grant date. The company anticipates a minimal impact on its financial statements for the current year due to this accounting change. This filing provides investors with transparency regarding ONEOK's updated accounting practices for equity-based compensation, a standard practice that became more prevalent around this time to better reflect the economic cost of stock options.
Key Highlights
- 1ONEOK Inc. is adopting the fair market value method for accounting for stock options, per SFAS 123.
- 2This accounting change is effective for stock options granted on or after January 1, 2003.
- 3Future employee stock grants will be expensed over the vesting period based on fair value at the grant date.
- 4The company expects minimal financial impact in the current year from this adoption.
- 5The filing includes a press release dated February 21, 2003, detailing this accounting policy change.