Reacting to Opposition to the FASB's "Share-Based Payment" Exposure Draft

question 172

Essay

Reacting to opposition to the FASB's "Share-Based Payment" Exposure Draft, Senator Carl Levin stated, "Stock options are the 800-pound gorilla that has yet to be caged by corporate reform." In reference to a bill that would thwart the FASB's position, Senator John McCain said, "This legislation blocking stock option expensing not only undermines FASB's independence, but undermines the effort to restore confidence in our financial markets as well." Discuss what these two senators meant by their statements.

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Definitions:

Personal Zone

Pertains to the physical space immediately surrounding an individual, often regarded in the context of social distance and interpersonal communication.

Intimate Zone

The physical space immediately surrounding someone, into which encroachment can feel uncomfortable or threatening unless you're intimately close.

Similar Skills

Abilities or competencies that are alike or share common characteristics, making them transferable across different tasks or roles.

Common Purpose

A shared goal or mission that unites a group of people or an organization.