Members of Senate and House Call on FASB to Expense Stock Options

WASHINGTON - Sen. Carl Levin, D-Mich., Sen. John McCain, R-AZ, and Rep. Pete Stark, D-CA, sent a letter yesterday to the Financial Accounting Standards Board (FASB) signed by 30 members of Congress voicing strong support for "an honest accounting standard that would require all employee stock option compensation to be shown as an expense on corporate financial statements." The letter urges FASB to issue a proposed stock option accounting standard as soon as possible and to promulgate a final standard by the end of 2003.

The letter is in response to an invitation from FASB to comment on issues related to employee stock option accounting.