Employee Stock Options: Hearing Before the Subcommittee on Securities of the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundred Third Congress, First Session, on the Proposal by the Financial Accounting Standards Board (FASB) Exposure Draft, "Accounting for Stock-based Compensation," to Require Companies to Record a Charge to Their Earnings Upon the Grant of an Employee Stock Option, October 21, 1993 |
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accounting for stock-based accounting principles accounting rules Accounting Standards Board American believe benefits Biomet Black-Scholes Buffett CANCELLED/REISSUED STOCK OPTIONS cash Chairman charge to earnings Christopher Dodd CMX Systems Committee company's compensation expense competitiveness Congress corporate credibility current accounting disclosure dividend yield earnings per share economic employee stock options entrepreneurial estimate executive compensation Exposure Draft fair value FASB proposal FASB rule FASB's Financial Accounting Standards financial reporting financial statements firms form of compensation going grant date hearing impact income statement industry investors issue legislation LEISENRING measure Merrill Lynch NASDAQ option pricing models option value percent ployees recognized require result retiree health risk-free interest rate Senator BOXER Senator DODD Senator LEVIN Shaman share owners shareholders start-up stock option accounting stock option plans stock options granted stock price stock-based compensation subcommittee Thank tions transactions valuation vesting volatility Warren Buffett
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Page 167 - The Securities and Exchange Commission, as a matter of policy, disclaims responsibility for any private publication by any of its employees. The views expressed herein are those of the author and do not necessarily reflect the views of the Commission or of the author's colleagues upon the staff of the Commission.
Page 191 - To bring about needed changes in ways that minimize disruption to the continuity of reporting practice. Reasonable effective dates and transition provisions are established when new standards are introduced. The Board considers it desirable that change be evolutionary to the extent that it can be accommodated by the need for relevance, reliability, comparability and consistency.
Page 150 - If options aren'ta form of compensation, what are they? If compensation isn't an expense, what is it? And, if expenses shouldn't go into the calculation of earnings, where in the world should they go?
Page 102 - It was organized in 1973 to foster a broader understanding of the importance of venture capital to the vitality of the US. economy.
Page 148 - How many legs does a dog have if you call his tail a leg? The answer: four, because calling a tail a leg does not make it a leg.
Page 75 - Expenses are outflows or other using up of assets or incurrences of liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major or central operations.
Page 124 - the first date on which are known both (1) the number of shares that an individual employee is entitled to receive and (2) the option or purchase price, if any." Under Opinion 25, the final amount of compensation cost of an option is measured as the difference between the exercise price and the market price of the underlying stock at the measurement date. As such, for the purpose of deter-mining compensation cost pursuant to Opinion 25, it is important to determine whether a company's stock option...
Page 114 - Question l(b) of Interpretation 44, prior to commencing employment, the individual would not be considered an employee. As such, the staff believes compensation cost for a fixed stock option would be measured based on the difference between the exercise price of the option and the market price of the underlying stock at the commencement of employment. G. Documentation of Option Granting Activities is Incomplete or Cannot be Located We understand that, in the course of reviewing their optiongranting...
Page 72 - A Design Methodology for Reliable Software Systems" [15], BH Liskov combines principles of structured programming and program correctness into a systematic approach to software development . In Mathematics. It is said that war is too important to be left to the generals, and so it is that clear thinking in programming is too important to be left to the mathematicians.
Page 142 - I appear before you today in my capacity as Chairman of the National Governors' Conference Committee on Natural Resources and Environmental Management.