Mike Levin: “This amendment relates to stock options. The amendment is one line. It says that the standard-setting body for…”

“This amendment relates to stock options. The amendment is one line. It says that the standard-setting body for accounting principles that is set up in this bill shall review the accounting treatment of employee stock options--just review it--and shall within a year of enactment of this act adopt an appropriate generally accepted accounting principle for the treatment of employee stock options. There has been a huge amount of debate about stock options. Recently the Republican Senate staff of the Joint Economic Committee issued a report about 'Understanding the Stock Option Debate.' In that report, it concluded that, 'Basic principles of financial accounting imply that stock option awards should be treated as a cost in corporate financial statements, and this cost should be recognized at the time of grant.' We have a Republican Senate staff report which, after reviewing all of the pros and cons, concludes that stock option awards should be treated as costs in financial statements. It is a very strong document. It is an analysis that I recommend to people to read.”