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As part of its due process, the Financial Accounting Standards Board (FASB) gathers feedback on its proposed standards. In many cases the organizations or persons

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As part of its due process, the Financial Accounting Standards Board (FASB) gathers feedback on its proposed standards. In many cases the organizations or persons responding provide useful information because they provide a viewpoint the FASB has not fully considered or else provide technical information about a particular industry or practice the FASB has failed to consider. In this assignment, you are going to evaluate the arguments raised by Micron in its comment letter on FASB's proposed standard on sharebased payments that later was nalized as SFAS 123R, Share~Based Payments. SFAS 123R, later codied as ASC 718, requires companies to recognize expenses using the fair value of the stock options granted to executives and employees. Required: Write a memo using the format in the Memo Guidelines to address the following two questions: 1. The rst two main points raised by Micron are: a. Employee stock options granted at market price do not constitute an "expense" under present accounting denitions, do not represent an economic cost to the issuer and should not be recognized as a compensation expense of the issuing company. b. The measurement methodologies and tools recommended by FASB rely signicantly on managementjudgments and estimates and will lead to a lack of consistency and comparability among reported results. State whether you agree or disagree with Micron on these two points. Explain. 1. Based on your general understanding of the FASB's conceptual framework and the debate over expensing stock-based compensation, would you support or oppose to FASB's requirement of recognizing stock-based compensation expense measured using fair value? Explain. There is not necessarily right or wrong answer to each question. Express your opinion and back them up with facts and reasoning. Do some research online. You can use all available literature as reference, including those listed below (downloadable on Blackboard). Your memo should be no more than three pages. You should use 12-point Times New Roman font, one~inch margin on all sides, double spacing in the main text and single spacing in the header You should submit your memo as an attached le online by 9:00 am. on Thursday September 21. You also need to hand in a hard copy at the beginning of class on that day

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