TAKING ACCOUNT OF STOCK-OPTIONS

Since last June, the Financial Accounting Standards Board has been acc epting comments on its proposal to require companies to recognize as e xpenses all stock-based awards, including stock options. The proposal has been on the FASB's agenda since 1984, long before executive compen sation became a hot topic. The board will begin holding public hearing s on the matter in the first quarter of 1994. The proposal has sparked a heated debate. Many investors argue that the new rules would give t hem a better understanding of a company's financial status. But many i n management are opposed, especially entrepreneurs. Curtail the use of options by requiring fledgling enterprises to record them as expenses , and the number of successful start-ups will dwindle, many predict. I n this issue's Perspectives section, seven experts consider the merits of the FASB's proposal. Some excerpts: ''What's the logic behind this prop The FASB's answer is both arcane absurd: accounting principles.' ' ''The proposal provides companies with the opportunity to develop cr eative, motivational compensation plans currently restricted by illogi cal and inconsistent accounting rules.'' ''Giving way on this issue wo uld reduce the FASB's credibility and threaten its survival. This woul d be a costly result.'' ''The new rules would confuse our income state ments, demotivate our people, and cripple a primary and uniquely Ameri can tool used to fuel the creation and building of enterprises.''