Oxley

The Financial Accounting Standards Board's proposal to expense the cost of stock options suffered a blow last week when a House committee approved a bill to narrow its scope.

The House Financial Services Committee, which is chaired by Rep. Michael Oxley, approved a bill by a vote of 45-13 that would limit the expensing of options to the top five officers of a company.The bill would also delay implementation until an economic impact study was completed—the Committee agreed by voice vote to set a one-year deadline for the study.

The bill will next face a vote on the House floor, which may take place before the August recess.

The FASB board issued a statement saying they "strongly oppose any current or proposed legislation that would undermine the independence of the FASB by preempting, overriding, or delaying the FASB’s ongoing effort to improve accounting for equity-based compensation."

Download Version Of The "Stock Option Accounting Reform Act"