Financial Accounting Blog

Sunday, April 25, 2004

Stock Options. The WSJ [subscription required] says there's a lobbying blitz gaining momentum on Capitol Hill to scuttle FASB's stock-option accounting proposal.

A House bill, introduced by Rep. Richard Baker (R-La.) has more than 100 bipartisan co-sponsors. It would prohibit the SEC from enforcing the new accounting rule until the SEC studies its economic impact. It would also require companies to count as expenses only the cost of options offered to their top five executives, rather than the cost of all options, which frequently are offered to far more employees.