Solution-Te fasb in sfas no 123 accounting for stock-based

Te fasb in sfas no 123 accounting for stock-based options

Reference no: EM13574063

The FASB in SFAS No. 123, "Accounting for Stock-Based Options," encourages (but does not require) companies to recognize compensation expense based on the fair value of stock options awarded to their employees and managers. Early drafts of this proposal required the recognition of the fair value of the options. But the FASB met opposition from companies and chose to only encourage the recognition of fair value. Recently, however, FASB has revised this standard (SFAS 123R) so as to require recognition of option compensation expense.

Required:

a. Discuss the role you believe the following parties should play in the accounting standard promulgation process:

(1) FASB	(5) Companies (CEO)
(2) SEC	(6) Accounting firms
(3) AICPA	(7) Investors
(4) Congress

b. Discuss which parties likely lobbied for the change from requiring expense recognition to only encouraging the expensing of stock options.

Reference no: EM13574063

Questions Cloud

Doughboy bakery would like to buy a new machine for putting : doughboy bakery would like to buy a new machine for putting icing and other toppings on pastries. these are now put on

For each of the following control procedures over cash : for each of the following control procedures over cash disbursements provide an example of how the auditor could test

John wayne once said courage is being scared to death but : saddling up please respond to the followingjohn wayne once said courage is being scared to death but saddling up

Prepare the journal entry to record interest on june 30 : the gorman group issued 810000 of 11 bonds on june 30 2013 for 879498. the bonds were dated on june 30 and mature on

Te fasb in sfas no 123 accounting for stock-based options : the fasb in sfas no. 123 accounting for stock-based options encourages but does not require companies to recognize

Current assets on january 1 include cash of 45000 : a. create income statement balance statement and statement of cash flow.b. provide recommendation to the

Net sales for the month are 800000 and bad debts are : net sales for the month are 800000 and bad debts are expected to be 1.5 of net sales. the company uses the

Shaggy limited purchased a new van on january 1 2014 the : shaggy limited purchased a new van on january 1 2014. the van cost 20000. it has an estimated life of five years and

Ignoring your answer to part a assume that fixed : ignoring your answer to part a assume that fixed manufacturing overhead was 100400 and the fixed selling and

User Account

All Pages

Te fasb in sfas no 123 accounting for stock-based options

Reference no: EM13574063

Reference no: EM13574063

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Compute interest amount

What is the value of resturcturing to a firm

Describe the type of financial ratios and other financial

All sales are estimated to be bad debts

What is the variance of this portfolio?

What is a way to keep managers accountable

Volcan real estate company was founded 25 years ago by the

What is the equipment after-tax salvage value

Compute the cost of equity and the wacc

If they decide to modify the companys capital structure so

What factors determine the required rate of return for any

What is the weight of the preferred stock

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT