Stock Option Accounting Bills Reintroduced

Bills to tie tax deductions to expensing stock options were reintroduced in both Houses by their 2002 sponsors. The "Ending to Double Standard for Stock Options Act" was introduced in the House by Pete Stark (D-CA) and in the Senate by John McCain (R-AZ) and Carl Levin(D-AZ). It is not likely that either bill will receive serious consideration given that the Financial Accounting Standards Board (FASB) will be reconsidering the issue and the International Accounting Standards Board (IASB) will be issuing new standards requiring expensing. Congress will undoubtedly wait to see what comes out of these deliberations.