More on Stock Option Expensing

An article in the Las Vegas Sun indicates Senators John Ensign (R-Nev.) and Barbara Boxer (D-Calif.) have announced plans to introduce the 2003 Broad-Based Stock Option Plan Transparency Act which would take aim at FASB‘s recent decision to expense stock options. The bill will call for better disclosure of company employee stock option plans on corporate financial statements and would prohibit SEC recognition of any new accounting standard on stock options. Here is a critical response by Bill Mann of the Motley Fool to the upcoming proposed legislation. Another article by Bill Fleckenstein at MSN.com recommends expensing at the time the options are exercised.