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The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis. All posts prior to September, 2007 are in the public domain, but after September 4, 2007, only subscribers to The Analyst's Accounting Observer will see all posts going forward. Only selected, occasional posts will be released to the public domain from September 4 forward.

Newt's News
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Posted by: Jack Ciesielski 4/28/2006 9:16 AM
Newt Gingrich testified a couple days ago before the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, offering his views on what it takes to keep America competitive. And he floated a very bad idea:

"6. Examine Stock Options. The Congress should revisit the decision by the Federal Accounting Standards Board (FASB) to require the expensing of employee stock options (ESOs) by firms that issue options to their employees. A way should be found for startups and small companies to revert to the older model of stock options..."

Note to Newt: it's the FINANCIAL Accounting Standards Board, not the FEDERAL Accounting Standards Board.

And there's no reason stock options accounting needs to revert to the way things used to be - when shareholders didn't see in the income statement what they were paying hired help. Which is where pay belongs.
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