Peeling away financial reporting issues one layer at a time

Category for Compensation other than post-employment

Stock Compensation Accounting: A Drop in the Ocean Against a Tide of Management Greed

When FAS 123R came into effect in 2005, it had been finally ordained that stock option grants must be accompanied by some modicum of expense recognition.  The FASB had fought the good fight and [Read More...]

Stock Compensation, Tax Law, Financial Reporting and Facebook’s IPO

Last August, I wrote a post in which I expressed my dismay that Carl Levin (D-Michigan) and Sherrod Brown (D-Ohio) are trying to make tax law based on the premise that FASB rules [Read More...]

A Much Needed Accounting Lesson for Two Senators

Nothing good comes from bad accounting, and many of the bad things that happen are easy to predict: excess bonuses to management, negative NPV investments, underfunding of pension plans, etcetera, etcetera, etcetera. Yet, the [Read More...]

SEC’s “Simplified Method” for Estimating Stock Option Cost is Ripe for Manipulation

Would you like your staff to learn more aboutSEC reporting?  Click here for a sample in-house training agenda!

Call me cynical, but I am wary of accommodations that permit companies to freely choose between [Read More...]

Are Stock Options an Efficient Form of Executive Compensation? – No!

Have you noticed how a large number of companies curtailed or eliminated their stock option grant programs when FAS 123R became effective?  You frequently hear proponents of stock option programs spout the line that [Read More...]

The Four Sins of Stock Option Backdating

I have a weak spot in my heart for my former students–especially if they were also my tennis or cycling buddies.  Chris, of the cycling variety, recently sent me this email message:

…So, today I [Read More...]