[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H. Con. Res. 98 Introduced in House (IH)]

103d CONGRESS
  1st Session
H. CON. RES. 98

Expressing the sense of the Congress regarding the accounting standards 
         proposed by the Financial Accounting Standards Board.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 1993

  Ms. Eshoo submitted the following concurrent resolution; which was 
            referred to the Committee on Energy and Commerce

_______________________________________________________________________

                         CONCURRENT RESOLUTION


 
Expressing the sense of the Congress regarding the accounting standards 
         proposed by the Financial Accounting Standards Board.

Whereas the Financial Accounting Standards Board is reconsidering the proper 
        accounting treatment for stock compensation plans, including broad-based 
        employee stock option plans and employee stock purchase plans;
Whereas the Board has suggested that stock options granted under stock 
        compensation plans should be reported by companies on their income 
        statements as expenses, similar to cash compensation or health benefits;
Whereas improved financial reporting and disclosure of employee compensation is 
        of paramount importance;
Whereas all 6 of the largest accounting firms have urged that the current stock 
        option accounting standards be left in place;
Whereas the potential distortion that may result from implementing the Board's 
        proposal may detract from recent attempts to provide better and clearer 
        information to the public;
Whereas new businesses in new-growth sectors, such as high-technology 
        industries, often lack financial resources and must rely on stock 
        options to attract qualified employees;
Whereas the Board's proposal will reduce incentives to grant stock options, 
        thereby limiting an important element in the feasible compensation mix 
        of these companies and posing a threat to entrepreneurship in general;
Whereas employee ownership in American companies has greatly expanded through 
        the use of stock compensation plans, and a majority of the emerging 
        growth companies distribute stock options to most or all of their 
        employees;
Whereas a rule recently promulgated by the Securities and Exchange Commission 
        increases the disclosure obligations of public companies, thereby 
        improving financial reporting and disclosure of employee compensation, 
        especially for high-level executives;
Whereas stock compensation plans have the potential to stimulate American 
        productivity and enhance American competitiveness;
Whereas discouraging the use of stock options will reduce the ability of new 
        businesses to obtain proper financing and reduce America's ability to 
        compete in the world economy; and
Whereas one function of Congress is to discern how Federal policies affect the 
        general public and to ensure that the general economic health of the 
        country is not unduly harmed by these policies: Now, therefore, be it
    Resolved by the House of Representatives (the Senate concurring), 
That it is the sense of the Congress that--
            (1) the accounting standards proposed by the Financial 
        Accounting Standards Board will have grave economic 
        consequences, particularly for businesses in new-growth 
        sectors, which rely heavily on entrepreneurship; and
            (2) the Board should not change the current accounting 
        rules under Accounting Principles Board Decision 25 by 
        requiring that businesses deduct from profits the value of 
        stock options.

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