House Panel Bill on Expensing Stock Options

The Wall Street Journal (subscription required) is reporting: "House Panel Approves a Bill On Expensing Stock Options." According to the article: The House Financial Services Committee on Tuesday approved a watered-down version of an accounting-industry proposal to require public companies…

The Wall Street Journal (subscription required) is reporting: “House Panel Approves a Bill On Expensing Stock Options.” According to the article:

The House Financial Services Committee on Tuesday approved a watered-down version of an accounting-industry proposal to require public companies to treat stock options as an expense on their balance sheets.

Under the bill, companies would expense only the cost of options offered to their top five executives, rather than the cost of all employee stock options.

Also, the Securities and Exchange Commission would be prohibited from enforcing a proposed Financial Accounting Standards Board rule until the SEC studies its economic impact for a year after the bill becomes law.

The bill was introduced by Rep. Richard Baker (R., La.,) chairman of the House Subcommittee on Capital Markets and now goes to the full House for consideration. According to the article, the House may take up the bill before its August recess.

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