Opposition to the FASB review of APB No.25 on stock options arose because stock options do not involve a cash outflow,and to treat them as an expense violates materiality.

Question

Quizplus · Accepted Answer

The opposition to the FASB review of APB No. 25 on stock options primarily arose because many believed that expensing stock options would negatively impact earnings reports, making companies less attractive to investors. The concern was not about cash outflow or materiality but about the potential impact on companies' financial statements and stock prices.

Opposition to the FASB Review of APB No