[Congressional Record (Bound Edition), Volume 150 (2004), Part 12]
[House]
[Pages 16824-16825]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     HOUSE KILLS OPTIONS RULE SHIFT

  (Mr. STEARNS asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. STEARNS. Mr. Speaker, yesterday the House voted to block a rule 
that would require companies to count stock options against their 
profits. Now, Federal Reserve Chairman Greenspan, a proponent of 
mandatory expensing and the Financial Accounting

[[Page 16825]]

Standards Board proposal, told a Senate hearing yesterday that he would 
be most concerned if Congress intervened. Of the rule-making board, he 
said, I think they do a good job. It is a tough job. But the House 
yesterday intervened.
  Advocates of mandatory expensing include Securities and Exchange 
Commissioner and Chairman William Donaldson, the billionaire investor, 
Warren Buffett and all four big accounting firms. The FASB proposal 
answered the call for accurate financial statements that came from a 
string of corporate scandals starting with Enron.
  Mr. Speaker, who could be against that? Just allow stock options to 
be expensed. We could allow exceptions for start-up companies, 
especially in the high-tech area, but instead Congress, here in the 
House yesterday, blocked a rule to count stock options.
  I hope the Senate will not pass this legislation.

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