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Technology Stocks : How high will Microsoft fly?
MSFT 474.82-0.8%Dec 15 3:59 PM EST

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To: rkral who wrote (71969)8/1/2002 11:23:58 AM
From: jonkai  Read Replies (1) of 74651
 
Both are used .. and required. One does not replace the other. They are apples and schmapples.

the point is that once you use this newer way of calculating fully Diluted earnings, the use of "Treasury Stock method" no longer shows accurate fully diluted EPS.....

that is why i say that FASB 123 "replaces" the older method..... it replaces the final EPS number....

both show different EPS, the fair Market method, shows the newer and more importantly, the EPS that is reported as earnings..... if FASB 123's option to calculate ESO's in earnings is used.....

"replacing" the treasury stock method's final number for fully diluted EPS...... the Treasury stock method also is used in "intrisic value method" as it is the default method, that is what the "fair market value method" is "replacing".......

jon.
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