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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CPEOs provide peace of mind around payroll services

The creation of these new IRS-certified service providers for small businesses clarifies some issues around traditional professional employer organizations.

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Pronoun practice to help polish your prose

Using pronouns correctly in writing and speech can help you make a good impression. Try our 10-question quiz.