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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs

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To: hueyone who wrote (132)7/27/2002 5:10:28 PM
From: rkralRead Replies (2) of 786
 
In calculating the pension costs that directly affect their earnings, companies in the Standard & Poor's index of 500 stocks are today using assumptions about investment return rates that go as high as 11 percent.

Huey, thanks for posting that. Don't recall Buffett getting into pension accounting before.

From an accounting perspective, do you have any problem with the "no cash flow" aspect of option costs (the FAS 123 portion)?

The only way I can justify it to myself .. is to consider the option grant a form of barter .. but then the IRS doesn't attempt to tax the barter (compensation) income to the employee.

Ron
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