Purpose

The purpose of this memorandum is to determine the appropriate Canadian accounting treatment to be used by IG Real Estate Advisors (‘IGRI’) to account for various stock option transactions.

Issues

1. Determine if the exercising of stock options subsequent to year-end, requires an adjustment to the financial statements or whether note disclosure is appropriate and the respective transaction should be recorded in fiscal 2008.
2. Determine how to account for the accelerated vesting of options as a result of a termination clause in an employee’s contract upon their dismissal.
3. Determine how to account for options that have yet to be granted.


Relevant Guidance

CICA Handbook Section 3820 – Subsequent Events
CICA Handbook Section 3870 – Stock-based Compensation and other Stock-based Payments

Analysis

1. Accounting Treatment of Options being exercised Subsequent to year-end

Based on section 3820 of the Handbook, financial statements should......

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Title: Accounting For Stock Options
Approximate Word Count: 774
Approximate Pages: 4 (250 words per double-spaced page)

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