财务会计理论（第6版）威廉·R·斯科特-scott_6e_PPT_ch08.pptVIP

Copyright ? 2012 Pearson Canada Inc 8 - * Chapter 8 Financial Accounting TheorySixth EditionWilliam R. Scott Economic Consequences and Positive Accounting Theory 8 - * Chapter 8Economic Consequences and Positive Accounting Theory 8 - * What Are Economic Consequences? Answer: Accounting policies matter Especially to managers Even if no effect on cash flows Contrasts with efficient securities market theory Accounting policies do not matter if no cash flow effects, and policies disclosed 8 - * 8.3, 8.4 Economic Consequences in Action Employee stock options (ESOs) APB 25 applied until 2004/2005 No expense need be recorded if intrinsic value = zero Are ESOs an expense? Dilution Opportunity cost Continued 8 - * Economic Consequences in Action (continued) Measuring ESO expense Black/Scholes option pricing formula Assumes option held to expiry date But ESOs can be exercised early, between vesting and expiry dates As a result, Black/Scholes overstates ESO expense Accountants’ answer Use expected exercise date in Black/Scholes formula Continued Economic Consequences in Action (continued) June, 1993 FASB exposure draft to expense ESOs Intense opposition from managers Claimed reasons for manager opposition Lower reported net income Low reliability FASB backs down, December, 1994 SFAS 123 May report ESO expense as supplementary information 8 - * 8 - * Economic Consequences in Action (continued) Manager abuses of ESOs Since no effect on net income, firms overdosed on ESO compensation Pump and dump Manipulate share price down prior to scheduled ESO grant dates Spring loading Late timing Continued 8 - * Economic Consequences in Action (continued) Increasing evidence of abuses led to renewed pressures to expense ESOs, despite continued strong manager resistance Manager resistance overcome 2005 IFRS 2, SFAS 123R Continued 8 - * Economic Consequences in Action (continued) Why such strong manager resistance to ESO expensing, particularly since: No eff