The Securities and Exchange Commission's top accountant has added his thoughts on how to properly account for stock options in the historical financial statements of public companies.

In a letter sent from his office, SEC c hief a ccountant Conrad Hewitt discusses the accounting consequences offered under Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees." The letter, sent to committee chairman at Financial Executives International and the American Institute of CPAs, discusses dating an option award to predate the actual award date, option grants with administrative delays, the uncertainty as to the validity of prior grants, and other related circumstances.

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