FASB Options Rules Will Hurt Private Firms Too

If you hand out stock options to employees, a controversial ruling from the Financial Accounting Standards Board might give you pause. The decision, issued late last year by the oversight agency, based in Norwalk, Conn., directs both public and private companies to list outstanding options as an expense item on their books rather than tacking them on to their financial statements as a footnote. The new guidelines are set to take effect in June for public companies and in December for private firms.

See full Article.