Pricing debate bedevils employee option accounting

US corporates are lining up to advertise their virtue by being the latest to account for their employee stock options as an expense. But with no consensus on how to price these instruments, will it bring more clarity or confusion?

Shareholder rage over the recent US corporate accounting scandals has spurred a growing number of US companies to account for their employee stock options as an expense. Last month alone, Ford Motor Company and Sunoco joined nearly 100 others – including blue-chips such as General Electric, General Motors and American International Group – that have announced plans to change their option accounting method.

But will this actually bring more transparency to corporate accounts? The companies

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