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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: Process Boy who wrote (97220)1/24/2000 2:35:00 AM
From: Michael Bakunin  Read Replies (2) of 186894
 
FASB gave up, and allowed old accounting with footnotes. See cpeonline.com

"SFAS 123 is the preferable accounting standard, although continued use of APB 25 (the intrinsic value method) for employee stock-based compensation accounting is allowed."

Nobody discontinued their plan; they stuck with APB 25. As for Buffet, when he buys a company outright, it is his habit to discontinue options grants. See: berkshirehathaway.com

"..we are replacing General Re's longstanding stock option plan with a cash plan...existing accounting principles ignore the cost of stock options when earnings are being calculated, even though options are a huge and increasing expense at a great many corporations...often wildly capricious in their distribution of rewards, inefficient as motivators, and inordinately expensive for shareholders."

-mb
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