October 26, 2001

The Honorable Michael G. Oxley
United States House of Representatives
Washington, DC 20510

Dear Congressman Oxley:

On behalf of the members of the American Business Conference (ABC) - CEOs of midsize growth companies - I want to commend you for your recent letters to the Securities and Exchange Commission, the International Accounting Standards Trustees, and the Financial Accounting Standards Board on stock options accounting.

We agree with you that the International Accounting Standards Board (IASB) has embarked on a contentious and unwise course. The IASB's project will not promote international harmonization and convergence of accounting standards for stock options. This is because the IASB seems intent upon ignoring the one workable standard now in effect - SFAS 123 - in favor of creating a new standard out of thin air. This approach courts controversy and puts the IASB's entire agenda and its credibility as a standard-setter at risk.

Some in the press have criticized you for your forthright statements about stock options accounting. Such criticisms are ill founded. You have a responsibility to speak out on economic issues. Accounting standards clearly raise such economic issues, as you noted in your letter to Chairman Pitt. Moreover, by speaking out early, you may have made future and more direct Congressional involvement in this issue unnecessary - assuming, of course, that the IASB and FASB are capable of taking your constructive advice.

In closing, let me thank you again for your leadership. If I or the CEO-members of the American Business Conference can be of assistance to you on this matter, please let me know.

Sincerely,

Barry K. Rogstad

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