Based Compensation. Effective January 1, 1997, the Company adopted the footnote disclosure provisions of SFAS No. 123, Accounting for Stock-Based Compensation. SFAS No. 123 permits entities to adopt a fair value-based method of accounting for stock- based compensation arrangements, under which compensation cost is determined using the fair value of the stock option at the grant date and the number of options vested, and is recognized over the periods in which the related services are rendered. However, it also allows an entity to continue measuring compensation cost for stock-based compensation using the intrinsic value method of accounting prescribed by Accounting Principles Board Opinion ▇▇. ▇▇ ("▇▇▇ ▇▇"), Accounting for Stock Issued to Employees. The Company has elected to continue to apply the provisions of APB 25 and provide pro forma footnote disclosures required by SFAS No. 123. Comprehensive Income and Segment Information In June 1996, the Financial Accounting Standards Board issued SFAS No. 130, Reporting Comprehensive Income and SFAS No. 131, Disclosure about Segments of an Enterprise and Related Information. SFAS No. 130 requires that all components of comprehensive income be reported in the period in which they are recognized and is effective for fiscal 1998. SFAS No. 131 establishes standards for disclosures of an entity's reportable operating segments, and is also effective in fiscal 1998. The Company is in process of evaluating the disclosure requirements of the new standards, the adoption of which is not expected to have a material impact on the consolidated financial statements. Reclassifications Certain amounts in the prior year financial statements have been reclassified to conform with current year presentation. Sequenom, Inc. (development stage company) Notes to Consolidated Financial Statements (continued)
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Sources: Series D Convertible Preferred Stock Purchase Agreement (Sequenom Inc), Series D Convertible Preferred Stock Purchase Agreement (Sequenom Inc)