Washington (Sept. 15, 2004) — Technology giants Cisco Systems Inc., Genentech Inc. and Qualcomm Inc. have teamed to develop a stock options expensing alternative that they maintain is easier and less expensing to adopt than the proposal from the Financial Accounting Standards Board.
According to The Wall Street Journal, the proposal developed by the tech triumvirate utilizes a model that results in costs roughly 70 percent lower than under the options expensing proposal released earlier this year by FASB.
On Sept. 15, the companies are expected to outline their plan to FASB.
In July, lawmakers in the House of Representatives voted 312-111 for the Stock Option Reform Act, a diluted options measure that requires that only the options given to a company’s top five executives be expensed.
The bill, however, is not expected to pass the Senate, although industry observers predict that some form would probably get through on an appropriations rider.
— WebCPA staff
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