SI
SI
discoversearch

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

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: hueyone who wrote (658)6/16/2004 11:48:41 AM
From: R2ORead Replies (1) of 786
 
When IRS recognizes 'Stock Options Expense' as expense, we will know things are real.

The MSFT 'problem' w. $50B cash would be simple: Convert the lot to employee stock options and deduct the 'value' from income as expense. (probably via share buyback to treasury stock). It is an expense, right? Warren Buffet said so. You don't pay income taxes on expenses, right?

And how would IRS view the ACTUAL option value when and if it is exercized? And when the actual value differs from the 'expensed' value?

How about just predicting future earnings and paying the tax now? Eliminates all that uncertainty.

Beyond dilution, this is FASB folly. Other FASB follies are recognized, however.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext