Norwalk, Conn. (April 24, 2003) -- Ending nearly a decade of controversy and debate, the Financial Accounting Standards Board voted unanimously that stock-based compensation should be recognized as an expense in income statements and amounts recorded at fair value measured at the grant date.

The decision reached this week ended years of heated pro-con arguments over accounting for stock options. Expensing stock options was proposed in the mid-1990s, but intense lobbying efforts — particularly from the high-tech sector — forced FASB to retreat from its position that stock options should be expensed.

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