February 18, 2003

Adding pressure on companies to

Adding pressure on companies to voluntarily expense options, late last week, Ernst & Young became the first major accounting firm to reverse its position on expensing options.

In a letter to the Financial Accounting Standards Board, Ernst & Young stated that it strongly supported efforts by both the FASB and the International Accounting Standards Board to develop a method to ensure that “stock-based compensation is reflected in the financial statements of issuing enterprises.” For more information about E&Y’s position, see the NY Times article – “Ernst & Young Changes Mind on Options” from February 14th.

The SEC remains closed today due to bad weather…

On, we have posted an interview with David Lynn of Wilmer Cutler on CEO/CFO certifications – see

Later today, is hosting a webcast program on “Understanding the New ‘Audit Committee Financial Expert'” – see