Financial Reporting


The Council of Institutional Investors decides to support including the cost of stock options as an expense on businesses’ reported income statements—a reversal of its long-standing opposition to the practice ( www.cii.org/press/expensing.htm ). The group, which includes pension funds, money managers, other financial services entities and lawyers, says its new position acknowledges companies’ vastly increased use of such financial instruments to compensate employees. The council does not recommend a specific valuation formula for them. But it urges the International Accounting Standards Board, which is considering issuing standards on accounting for options, to ask corporations, institutional investors and other affected parties for input on valuing them.

FEATURE

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.

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Solving the lease accounting challenge

The challenges of the new lease accounting standard have been pervasive to say the least. In this free, independently-written report, you'll learn effective adoption strategies as well as resources for easing the transition to the new standard.