On March 31, the Financial Accounting Standards Board (FASB) published an Exposure Draft entitled, “Shared-Based Payment, an Amendment of FASB Statements No. 123 and 95.” Today, the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises held a hearing entitled “The FASB Stock Options Proposal: Its Effect on the U.S. Economy and Jobs.” Access the press release on the hearing here as well as prepared testimony at the hearing here. The press release notes the following statement from House Financial Service Committee Chairman Michael G. Oxley:
“The FASB proposal has great implications for shareholders, publicly traded companies, and the U.S. economy, so it’s entirely appropriate that it be reviewed by this Committee and by the SEC . . . People should understand that expensing, while it may have benefits, will not magically result in sound corporate governance.”