Question: In 2002 Toronto Dominion Bank TD announced that it would
In 2002, Toronto- Dominion Bank (TD) announced that it would voluntarily expense ESOs, starting with its 2003 fiscal year beginning November 1, 2002. Accounting standards in Canada did not require ESO expensing until fiscal years beginning on or after January 1, 2004. In the MD& A section of its 2003 annual report, TD stated that it had charged to expense for 2003 an amount of $ 9 million for ESOs, using the fair value method. TD’s reported net income for 2003 was $ 1.076 billion, compared to a net loss of $ 67 million for 2002. Suggest reasons why TD would voluntarily expense its ESOs.
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