April 5, 1995

Companies Protest FASB Stock Option Proposal

NCEO founder and senior staff member

Four hundred companies have petitioned the Financial Accounting Standards Board (FASB) in opposition to that body's proposal that companies provide a footnote disclosure of the value of outstanding stock options. The footnote approach replaced an earlier FASB proposal that the future value of options be subtracted from profits. The companies said no acceptable formula exists for assessing the value of the options and that disclosure could harm them competitively.