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Strategies & Market Trends : Booms, Busts, and Recoveries
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To: Don Lloyd who wrote (28838)2/18/2003 1:09:03 PM
From: LLCF  Read Replies (1) of 74559
 
<If you have $100 and you have an expense of $10, you would expect to end up with $90. This is somehow beyond the understanding of the FASB.>

You seem to be suggesting that there be no non-cash charges against sales at all. Clearly we're not going to that, so what's the point? This appears to be your real point IMO:

<<If a company gives away luxury pens to all its employees, it IS an expense because it has to buy them first. If AMD were to give its employees INTC shares, it would also be an expense that depended on how much had to be paid for them on the market. However, if AMD gives its employees AMD shares, the only effective expense is the paper and the electricity for the copy machine.>>

And so you are basically saying that since the company can print it's own stock certificates it should not expense anything which entails payment with shares. Or in the case of the federal government... anything they do by printing money to aquire things actually costs them nothing and shouldn't be expensed.

**Economically speaking of course there is a cost to shareholders in printing more shares (or options)... dillution. I fail to see how anyone argues the point, and have never seen anyone rebut this basic point.

In any case, it appears the days of it making much difference are probably over as the talent bought with options during the tech boom seems abundant now.

dAK
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