Criticism of mandatory options expensing proposal continues

New Angles

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The controversy surrounding proposals to require companies in the US to charge the cost of employee stock options against their income statements – referred to as mandatory expensing – shows no sign of abating. Robert Herz, chairman of the Financial Accounting Standards Board (FASB), continued to offer a robust defence of FASB’s proposals during his testimony on Capitol Hill last month.

But lobbyists representing small business interests – which account for much of the opposition to

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