Washington (June 4, 2003) -- Legislation aimed at short-circuiting FASB’s plans for mandatory expensing of stock option compensation “would undermine the board’s standards setting processes,” and “send a clear and unmistakable signal that Congress is willing to interfere with accounting standards,” FASB Chairman Robert Herz warned the House Financial Services Capital Markets Subcommittee Tuesday.

The bill would require “enhanced disclosure” of stock options by corporations and place a three-year moratorium on new accounting standards for stock options pending the result of studies of the effects of those disclosures.

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