To require a review of accounting treatment of stock option plans, and the establishment of an appropriate stock option accounting principle within 1 year.

January 16, 2003

Mr. LEVIN (for himself and Mr. MCCAIN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

To require a review of accounting treatment of stock option plans, and the establishment of an appropriate stock option accounting principle within 1 year.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Stock Option Accounting Review Act'.

SEC. 2. REVIEW OF STOCK OPTION ACCOUNTING TREATMENT.

Section 108 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7218, 116 Stat. 768) is amended by adding at the end the following:

`(e) STOCK OPTION ACCOUNTING TREATMENT- The standard setting body described in section 19(b)(1) of the Securities Act of 1933 shall, for purposes of establishing generally accepted accounting principles--

`(1) review the accounting treatment of employee stock options; and

`(2) not later than 1 year after the date of enactment of this subsection, adopt an appropriate generally accepted accounting principle for the treatment of employee stock options.'.

END