The most political issue in the FASB's most recent deliberations and amendments to GAAP on stock options was:
A) The negative effects on earnings of companies in the tech industry if they had to recognize expenses associated with stock compensation.
B) The negative effects on assets of recognizing stock options in equity.
C) The disclosure of stock compensation expense in the notes.
D) Accounting for stock options that have not yet been granted to employees.

Question

Quizplus · Accepted Answer

The most political issue in the FASB's most recent deliberations and amendments to GAAP on stock options was the negative effects on earnings of companies in the tech industry if they had to recognize expenses associated with stock compensation. This was a highly controversial issue and led to intense lobbying by the tech industry against the proposed changes. Ultimately, the FASB decided to require companies to recognize stock option expenses, despite the opposition.

The Most Political Issue in the FASB's Most Recent Deliberations