Another Look at FASB Interpretation 44


A comment in “FASB Offers More Guidance on Stock Options” ( JofA, July00, page 18) suggests that the inability to reprice options could cause a company to lose all its employees if the value of its stock declines and is not likely to go up in the near future.

I have been involved with financial reporting issues on behalf of the Institute of Management Accountants for over 15 years and we, like most everyone else, were opposed to the FASB conclusions on recognition and measurement of stock compensation. However, as the board worked to clear up the many interpretive questions resulting from the continued use of APB Opinion no. 25, we participated in that due process as well.

I have never objected to the concept that repricing of options makes a fixed plan become a variable plan. That simply makes sense. Rather than reprice, all any company has to do is simply issue new options and leave the “underwater” ones on the table. I realize sometimes that requires the action of stockholders to approve additional shares, but if the action is appropriate, there should be no problem with stockholders.

Frank C. Minter, CPA


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.