Intel Corporation (INTC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC)

INTC 36.82

+1.5%

Dec 19 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Stock Farmer who wrote (174552)	5/14/2003 10:31:02 PM
From: brushwud	Read Replies (2) of 186894

You covered each of the dilution, intrinsic, and fair value methods of accounting for the cost of stock options in that hilarious posting of yours. The contrast between the dilution and fair value methods brings to mind how convertible debt is accounted for. Basically, the cost (interest) is deducted from the basic income statement as if conversion is not an issue, but when it becomes more conservative to assume that dilution will take place, then the interest paid is added back before calculating fully diluted EPS. What would be the rationale for charging the estimated value of options to the bottom line, and then also diluting the EPS as if the options will surely be exercised?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next