Options Debate to Continue When Congress Reconvenes

The bill would prohibit any further options expensing until after the Commerce and Labor departments produce a joint study on the potential impact of such a rule.

Although an analogous bill in the Senate already has more than 20 co-sponsors, most political observers have given it little chance of passing. Sen. Richard Shelby, R-Ala., has said he is dead-set against the bill. Given that he is the chairman of the Senate committee that has jurisdiction over it, Shelby's opposition could well keep the entire body from ever voting on it.

But this being an election year, even those who doubt the bill's chances won't say they are nil. Supporters of the bill could attempt to force a floor vote on the bill or tack it as an amendment to another bill once the Senate reconvenes on Sept. 7.

"The odds are really against it," said one political analyst who closely follows legislation on Capitol Hill. But the analyst added, "I hate to say, 'never.'"

Given that chance, however slight, expensing proponents have been pushing hard to get the Senate to support FASB's proposal by staying on the sidelines.

In that vein, Donaldson submitted his letter to the senators on Aug. 19, where he noted that FASB's deliberation on the issue has been open and extensive, and he argued that supporting FASB was "critical to the restoration of public confidence in the integrity of financial reporting."

"I believe strongly that the FASB's consideration of this proposed standard regarding stock options should be allowed to run its full course," Donaldson wrote.

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