Cliff Stearns: “Yesterday the House voted to block a rule that would require companies to count stock options against their profits.…”

“Yesterday the House voted to block a rule that would require companies to count stock options against their profits. Now, Federal Reserve Chairman Greenspan, a proponent of mandatory expensing and the Financial Accounting Standards Board proposal, told a Senate hearing yesterday that he would be most concerned if Congress intervened. Of the rule-making board, he said, I think they do a good job. It is a tough job. But the House yesterday intervened. Advocates of mandatory expensing include Securities and Exchange Commissioner and Chairman William Donaldson, the billionaire investor, Warren Buffett and all four big accounting firms. The FASB proposal answered the call for accurate financial statements that came from a string of corporate scandals starting with Enron. Mr. Speaker, who could be against that? Just allow stock options to be expensed. We could allow exceptions for start-up companies, especially in the high-tech area, but instead Congress, here in the House yesterday, blocked a rule to count stock options. I hope the Senate will not pass this legislation.”