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.

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These year-end tax planning strategies address recent tax law changes enacted to help taxpayers deal with the pandemic, such as tax credits for sick leave and family leave and new rules for retirement plan distributions, as well as techniques for putting your clients in the best possible tax position.

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