100 words for each Question please1. What accounting standard in 2004 caused stock options...

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Accounting

100 words for each Question please
1. What accounting standard in 2004 caused stock options todecline as the primary source of non-cash compensation? Why?
2. Does compensation expense from stock options meet thedefinition of an expense as discussed in SFAC 6? Why?
3. Do you think compensation expense from stock options shouldbe recognized as an expense? Choose one position, and supportit.

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The time has come to end the debate on accounting for stock options the controversy has been going on far too long In fact the rule governing the reporting of executive stock options dates back to 1972 when the Accounting Principles Board the predecessor to the Financial Accounting Standards Board FASB issued APB 25 The rule specified that the cost of options at the grant date should be measured by their intrinsic valuethe difference between the current fair market value of the stock and the exercise price of the See Answer

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In: Accounting100 words for each Question please1. What accounting standard in 2004 caused stock options to...100 words for each Question please1. What accounting standard in 2004 caused stock options todecline as the primary source of non-cash compensation? Why?2. Does compensation expense from stock options meet thedefinition of an expense as discussed in SFAC 6? Why?3. Do you think compensation expense from stock options shouldbe recognized as an expense? Choose one position, and supportit.