Stock option plans are one form of variable compensation in which the employee is given the opportunity to participate in the company as a stockholder. This kind of stimulus can mean advantages for employees and companies. Accounting is responsible for measuring and disclosing the amounts involved. Both FASB and IASB present specific rules in this respect. In Brazil, this subject has been discussed in opinions and recommendations by CVM and IBRACON. This article presents the foundations of stock options for employees and existing rules for the accounting treatment of these plans. 14 national publicly-traded companies were selected for the empiric study. The collected information demonstrates that there are differences between what is disclosed to regulators and the capital market in Brazil and in the international context.
Stock Options; Variable Compensation; Accounting
