Stock Option Accounting Reform Act

Summary

Stock Option Accounting Reform Act - Amends the Securities Exchange Act of 1934 to require an issuer of registered securities to show as an expense in its mandatory annual report the fair value of all stock purchase options granted to certain of its senior executive officers after December 31, 2004. Exempts small business issuers from such requirement. Amends the Securities Act of 1933 to require reporting of: (1) stock option expenses as a reduction of the total expense in the fiscal year in which they expire or are forfeited; and (2) as income any excess by which such reduction exceeds total option expenses for any fiscal year. Requires any accounting principle recognized as "generally accepted" by the Securities and Exchange Commission (SEC) regarding the expensing of stock purchase options to comply with this Act. Denies recognition to any such accounting principle until the Secretaries of Commerce and of Labor complete a joint study on the economic impact of mandatory expensing of all employee stock options.

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3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 19 November 2003

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• Introduced in Senate (PDF)

  Introduced in Senate · EN · 19 November 2003

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• Introduced in Senate

  summary · EN · 19 November 2003

  Open at official source

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