To: Alan Smithee who wrote (12811 ) 2/4/2002 11:24:01 PM From: MulhollandDrive Read Replies (1) | Respond to I believe I heard that the majority of stocks are over 33% overvalued based simply on the current accounting treatment of options. Back in the early 90's FASB wanted to change the rules and met with tremendous opposition from Congress. Right now options expense to companies is basically a footnote on the balance sheet.fei.org After about eight months of unrelenting political heat, the FASB backed down from its original Exposure Draft and abandoned its intention to require companies to report as an annual expense the value of stock options in favor of additional disclosures. Bowing to political pressure and corporate opposition, former FASB Chairman Dennis Beresford acknowledged that the threat of congressional intervention heavily influenced the FASB's decision. James (Jim) Leisenring, then-FASB vice chairman, and a disciple of stock option expensing, emphasized that the Board had not altered its position that stock options have value, and that their value can be estimated and included on financial statements, but the threat of Congress taking this matter into their own hands was a factor to shelve further
