Accounting for ESO (Employee Stock Options) has been one of the most controversial topics in financial reporting during the last decade. Many employees receive equity compensation as a supplement to their salaries. Traditionally, this compensation comes in the form of ESO grants. This paper...

This study examines practitioners' perceptions of uses of stock option compensation expense. Specifically, Statement of Financial Accounting Standard (SFAS) No. 123(R) requires firms to report the estimated fair value of stock option compensation as an expense over the employees' required...