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Companies typically argue that it's hard to value options precisely, but this is rubbish: There are innumerable items in financial statements -- pension costs, allowances for doubtful accounts and so forth -- that cannot be known precisely, and thus are estimated. Also, companies are already required to report what earnings would have been were options expensed, but in a lame compromise adopted in 1995, such information is only reported once a year -- and is buried deep in the footnotes of the 10-K filing...

Also, companies are already required to report what earnings would have been were options expensed, but in a lame compromise adopted in 1995, such information is only reported once a year -- and is buried deep in the footnotes of the 10-K filing.

Finally, companies argue that if they are forced to account for the cost of options (even though this is a non-cash item), then they will issue fewer of them, which would stifle innovation, new business formation, and so forth...

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Analysis of Financial Statements Dell & Hp Financial Statements Examining Financial Statements Financial Options Paper Financial Stability of funding a Pension Importance of Financial Statements Introduction to Financial Statements The Four Basic Financial Statements The Four Financial Statements The ISAB argues that the accruals and going concern concepts are key underlying assumption in the preparation of financial statements. Discuss the problems for companies in applying these accounting concepts and explain why other concepts might al... Basic Financial Statements comparison of Medtronic's financial statements to Baxter's financial statements Financial Statements Fundamentals of Financial Statements Review of Financial Statements

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