Sen. Mike Enzi, R-Wyo., the sole accountant in the Senate, is spearheading a bipartisan effort to block the proposal by the Financial Accounting Standards Board to require the expensing of stock options, claiming that it would harm small business owners.
In mid-October, FASB said that it would delay the implementation of its options expensing proposal by six months. However, Enzi's effort wants to derail the proposal entirely.
In a statement, Enzi said, "FASB is right to slow down its stock option proposal, but a delay should occur because FASB is working to test the accuracy of the evaluation formulas, not because it wants to give companies more time to prepare for implementing a flawed proposal. The development of entrepreneurial companies and the small business community should not have to absorb the shock of a proposal that has not been thoroughly tested and could cause irreversible harm."
Enzi has also voiced concerns that FASB's plans for estimating the value of options are inaccurate.
Enzi earlier had offered up S. 1890 - a bill requiring options expensing only for larger companies - but that measure has met with a cold reception from colleagues such as Senate Banking Committee chair Richard Shelby, R-Ala., and Sen. Peter Fitzgerald, R-Ill.
Meanwhile, in July, the House passed H.R. 3574, a diluted options expensing measure that requires companies to expense options given to their top five executives. Supporters of FASB's expensing plan are fearful that Enzi and like-minded allies will avail themselves of FASB's six-month delay to gather enough support to kill the proposal.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access