Zeev's Turnips - No Politics Message Board

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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: Mark L. who wrote (79445)	6/16/2002 12:11:37 AM
From: mishedlo	of 99280

but he feels strongly that the ACCOUNTING for options must change. His view is that options are compensation; as such, they should show up on the income statement that way. He is especially irked by the specious argument that the value of options can't be accurately assessed, and thus accounting for them on the income statement would introduce an extra possibility of error. You are correct. Your presentation is correct. It is the accounting problem that is bad, not the fact that there are options. Others have suggested they are inherantly bad all around (sorry no links). The reason being if someone gets paid in options rather than cash there can be many deliberate attempts to lie cheat and steal and say anything and take any risks to get the prices up to a specific goal (to get paid the desired amt of compensation). Not sure if Buffet commented on this aspect but others have. Buffet has commented on the earnings accounting aspect. M

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