The backdating of

Benefit / reduction will normally be awarded from the Monday following the week in which we receive your application form.In certain circumstances, it may be possible to award benefit / reduction from an earlier date. The maximum amount of time that your claim can be backdated is different for Housing Benefit and Council Tax Reduction claims.Because the option value is higher if the exercise price is lower, executives prefer to be granted options when the stock price is at its lowest.

The maximum period a claim for Council Tax Reduction can be backdated for working age customers is six months from the date you request it.

(Under APB 25, the accounting rule that was in effect until 2005, firms did not have to expense options at all unless they were in-the-money.

However, under the new FAS 123R, the expense is based on the fair market value on the grant date, such that even at-the-money options have to be expensed.) Because backdating is typically not reflected properly in earnings, some companies that have recently admitted to backdating of options have restated earnings for past years. The exercise price affects the basis that is used for estimating both the company's compensation expense for tax purposes and any capital gain for the option recipient.

It is not possible to backdate a claim any further than these periods.

In order for a request for backdating to be considered there must be what is called 'good cause' and the council must be satisfied with the reasons you have given for not claiming benefit / reduction at the appropriate time.

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Backdating does not violate shareholder-approved option plans.

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