The Most Political Issue in the FASB's Most Recent Deliberations

question 174

Multiple Choice

The most political issue in the FASB's most recent deliberations and amendments to GAAP on stock options was:

• A) The negative effects on earnings of companies in the tech industry if they had to recognize expenses associated with stock compensation.
• B) The negative effects on assets of recognizing stock options in equity.
• C) The disclosure of stock compensation expense in the notes.
• D) Accounting for stock options that have not yet been granted to employees.

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Definitions:

Norway

A country in Northern Europe known for its vast coastlines, fjords, and extensive welfare system.

Economic Efficiency

A condition in which all resources are optimally distributed to serve each individual or entity in the best way while minimizing waste and inefficiency.

Entry Barriers

Obstacles that make it difficult for new firms to enter a market, including high start-up costs, stringent regulations, and strong incumbent competition.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing brands due to preference or satisfaction.