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The Post-Eron Era and the FASB

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Is this true and can you explain why?

After the post-Enron era the FASB came up with the new requirement that require companies to record the expense at the time the stock option was awarded and many companies fought to do away with this new requirement.

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After the post-Enron era the FASB came up with the new requirement that require companies to record the expense at the time the stock option was awarded and many companies fought to do away with this new requirement.

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This is mostly true, but not entirely. It is true that as of June 2005, companies must expense stock options. It is not true that it is only because of Enron, although Enron was one of the reasons why the regulation was changed. Previous to 2005, companies did not recognize the stock options granted to employees as an expense. The fair market value of the stock options were disclosed in the notes to the financial ...

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