In the 1990s, the FASB Considered Making a New Rule

question 53

Multiple Choice

In the 1990s, the FASB considered making a new rule to count stock option awards by companies as expenses. Some companies protested to the FASB, and to Congress, and the FASB at that time decided not to make the new rule. This is an example of what type of reaction to accounting measurement?

• A) Acting to modify the measurement system before it goes into effect
• B) Doing what is desired in response to being measured
• C) Doing what looks good on the measurement system, even though it was not what was actually desired
• D) Lying