Stock Options: The Accounting Issue and Its Consequences

Lyke, Bob ; Shorter, Gary

Library of Congress. Congressional Research Service.

关键词: Employee stock options;    Finance;    Accounting;   

RP-ID  :  RS21392
RP-ID  :  RS21392_2005Nov15

美国|英语

来源: UNT Digital Library

【 摘 要 】

The Financial Accounting Standards Board (FASB) has issued a long-anticipated rule that stock options must be recognized as an expense on corporation income statements. The previous accounting rule permitted but did not require recognition; corporations that elected to omit the cost of options, as most did, have been able to report higher earnings. This report examines the debate surrounding the issue and discusses the potential consequences.