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To: L. Adam Latham who wrote (169413)	8/17/2002 2:47:36 AM
From: hueyone	Read Replies (1) \| Respond to of 186894

FASB has decided NOT to force stock option expensing. This issue isn't over. The recent meetings at FASB were limited scope meetings conducted primarily for the purpose of providing alternatives for companies transitioning to expensing stock options on the income statements. This fall, the IASB, International Accounting Standards Board, will be releasing its proposal to require companies to expense stock options in reported earnings using the fair value approach. The FASB doesn't hide the fact that they are in favor of the same, but last time they made that decision in 1994, a Congress well bribed by Silicon Valley lobbies threatened to shut the FASB down. With the IASB standing up to do the right thing (imo), perhaps FASB will be emboldened to follow suit. I view more transparency in the information provided to shareholders as a good thing for shareholders.

To: L. Adam Latham who wrote (169413)	8/20/2002 3:00:25 AM
From: hueyone	Respond to of 186894

FASB has decided NOT to force stock option expensing (hooray!). But they will require the pro forma numbers to be printed in each quarterly earnings announcement, and not just in the annual report (a good compromise, IMO). The only hurdle now is Congress messing in this area where they don't belong. Adam, It is quite ironic that you should suggest that the only hurdle now is Congress messing in this area where they don't belong. I entirely agree with you, but for an entirely different reason: I am 100% certain that without potential Congress intervention, backed by Silicon Valley and other business lobbies, that FASB would indeed require expensing of stock options on the income statements. Perhaps you did not read the last paragraph of the article from the WSJ you posted: The FASB adopted the current rules on the voluntary accounting of stock options in 1995. At that time, the board had hoped to implement reforms making stock option expensing mandatory, but Congress blocked the effort after intense lobbying by corporations. Huey