CFO.com has this article–” Stock Option Standoff: Bill would place three-year moratorium on revising employee stock option accounting; angry Herz says the move could impair FASB’s independence“–by Craig Schneider. According to the article, HR 1372, “The Broad-Based Stock Option Plan Transparency Act” introduced by Rep. David Dreier (R-Calif.) and Rep. Anna Eshoo (D-Calif.) in March has gained nine new co-sponsors, since the hearing on the subject (discussed here) last week, bringing the total backers for the bill to 44. The article reports FASB Chairman Robert Herz as saying that intervention by Congress would appear to be inconsistent with the language and intent of the Sarbanes-Oxley Act and the related SEC Policy Statement, both of which were intended to enhance the independence of FASB. It also reports SEC Chairman William Donaldson as opposing legislation by Congress.
What do you think about the whole subject? Smart Pros provides this article–“The Accounting Cycle Here They Go Again! More political attempts to thwart good accounting“–by Edward Kertz. You can take a poll at SmartPros by clicking here.