FASB attacked over share options standard
FASB chairman Robert Herz has been attacked by senators and business leaders over plans to force companies to expense for stock options.
The new rules, which FASB agreed to at a meeting last month, will see companies required to deduct the cost of share-based payments from profits when the final standard is produced around April next year.
However Republican senator Michael Enzi said he was ‘dissappointed in the appearance that everything has already been decided,’ the Financial Times reported. He also urged Herz to consider the impact the new rules may have on the US economy.
Other opponents at a debate on the subject were venture capitalist John Doerr and former Netscape head Jim Barksdale.