The SEC has issued some guidelines providing its views regarding the valuation of share-based payment arrangements for public companies. You can access the press release here as well as Staff Accounting Bulletin No. 107, “Share-Based Payment,” (SAB 107) here.
A Wall Street Journalarticle–“SEC Issues Guidelines For Options Expensing“–reports:
The SEC staff reaffirmed the new rule for stock options issued by the Financial Accounting Standards Board, the private Connecticut-based standard-setter. Industry groups welcomed the SEC’s guidance but called for delaying the new accounting rule, set to take effect starting June 15.
Also, from BusinessWeek Online: “SEC Gives Leeway in Measuring Option Value.”