As Congress departed after finishing its business for the year, another issue was playing out behind the scenes in government and on Wall Street that could have even further-reaching implications for investors and corporations.
Recently, the Financial Accounting Standards Board issued a rule requiring corporations to report the issuance of stock options as an expense beginning in the third quarter of 2005. FASB is to be commended for having the courage to take a look at the thorny question of stock options.
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