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Technology Stocks : Intel Corporation (INTC)
INTC 36.82+1.5%Dec 19 9:30 AM EST
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To: GVTucker who wrote (165341)5/23/2002 4:08:47 PM
From: ptanner  Read Replies (1) of 186894
 
GVTucker, re: "The critics (and my) viewpoint is that if the corporation gets the tax benefit, they should show the expense. It's as simple as that.

Yes, you're right in your conclusion, though. It really is pretty much an accounting issue, and won't affect the cash flow of a company. I think that the only reason that some companies are fighting the issue is that they don't want anyone to realize their "real" earnings."

Thanks for the confirmation. I agree that if it look like an expense, and gets the benefit of an expense then it should be reported as an expense.

This is why I was confused about the remarks of the proposed changes increasing the cost which might reduce the use of options - when the cost is only in the PR from a lower reported earnings number but no change in the actual business cash flow?

-PT
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