The Small Business Survival Council claims that proposed rules requiring stock options to be treated as an expense would hurt small business.
Commenting on proposed accounting standards in the United States and at the international level, the Council’s Chairman, Karen Kerrigan, writes:
- “…small businesses may end up paying the price for this controversial ‘reform’ enacted to clean up the actions of a few bad players. Stock options are used by businesses to attract and retain talented employees. They’re an important tool for many small firms, particularly in the high-tech sector.
Mandated expensing makes little accounting sense; will not give investors accurate or reliable information; would incorporate flawed models for valuating options; and will destroy broad-based plans, according to those who say there’s a better way to financially capture stock option activity.”
This article was originally printed in the American City Business Journals. For more information, read the full text of the article which appears on the Small Business Survival Council’s website.