Date of Defense

Spring 4-21-2005



First Advisor

Mimi Coleman, Business Communications

Second Advisor

Jerry Kreuze, Accountancy

Third Advisor

Sheldon Langsam, Accountancy


benefits packages


One of the most heated debates witnessed by the accounting industry was rekindled at the dawn of the new millennium, a resurgence of an issue discussed from the early 1990s. Brought to new light, in part by the corporate debacles of Enron and WorldCom (among others), the concern of expensing employee stock options has taken a forefront in the halls of the Financial Accounting Standards Board (FASB). Not only is the accounting profession facing a difficult polarization of ideas as to how to appropriately account for stock options, but Congress has also joined in the discussion and has threatened intervention if necessary. Arguments exist concerning the use of stock-based compensation as a reasonable means of paying employees for high performance. The FASB argues that expensing options is a much more relevant and reliable method of accounting for the economic reality of options. This thesis takes the position that though it is difficult to value stock options, it is not a valid excuse for not recording a reasonably appropriate expense.

Access Setting

Honors Thesis-Open Access

Included in

Accounting Commons