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Strategies & Market Trends : John Pitera's Market Laboratory
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To: Enigma who wrote (6516)7/5/2002 12:53:38 AM
From: Raymond Duray  Read Replies (2) of 33421
 
Enigma,

Re: Yes but how do you do the accounting for stock options?

I'll need to do some research for you on that. Currently, the options are footnoted and not included in the Balance Sheet as a liability of the corporation before they are exercised. Then they don't appear as an expense on the P&L either. Is it magic or is it a deception? Depends completely on who you ask.... The details of where to put the options into the liability side of the ledger is what I'll try to answer for you in a bit... Or was that a byte?

-R.
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