Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 176.67

+1.6%

3:59 PM EST

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To: Wyätt Gwyön who wrote (125844)	12/4/2002 9:48:42 PM
From: The Reaper	Read Replies (1) of 152472

MM, I know we've been thru this a hundred times on this board regarding expensing of options, but there is one thing I'm struggling with if the company should expense the options at the time of issue. If Black-Scholes is used to figure out the value for the options that should be expensed at issue, shouldn't there also be an adjustment to income if the price of the common stock declines thru the course of the year after those particular series of options are issued. In effect the company is going to recoup some of its initial expense since the options issued a year ago are not worth as much as they were at issue. There could conceivably be a situation where a company (hopefully not QCOM) which has expensed ten year options at the time of issue, finds its stock so depressed ten years later that those options (which have already been expensed) are worthless and the company should recapture that expense that it incurred ten years ago. To me that fact alone suggests to me that stock options should not be expensed until the company has to go out and actually buy its stock to satisfy the exercise of those options. all IMHO kirby

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