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Dennis Beresford Harvard Case

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Dennis Beresford Harvard Case
The threat of congressional legislation, that would effectively put the FASB out of business, forced the board to strategically retreat from their 1994 exposure draft to have companies recognize the value of stock options given to employees as an expense. The FASB settled with having companies disclose what the cost would have been had they treated it as an expense in their footnotes to financial statements.
Dennis Beresford, the FASB chair at the time, described the stock compensation issue as significant because it was one of only two times in the FASB’s history where there was absolute interference with their proposals through lobbying and government intervention.Since the FASB is a private standard setting organization, it needs reasonable
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