FINANCIAL REPORTING

Financial Reporting



Financial Reporting

Introduction

This assignment is based on providing arguments and answering two questions in the context of financial reporting.

EBay's Current Accounting Treatment for Employee Stock Options

Considering the extensive use of stock options as compensation for key personnel in the advanced times, the Financial Accounting Standards Board (FASB) requires all companies to list the cost of the stock options as an expense in their financial statements, not as a footnote that causes no impact on the financial reporting. This rule turned to be a warning sign for E-bay and other large companies to start expensing their options (Gray, ...