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.
Technology Stocks : eBay - Superb Internet Business Model
EBAY 83.82+3.7%Nov 7 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: KYA27 who wrote (7334)12/25/2004 10:54:37 AM
From: Frederick Langford  Read Replies (1) of 7772
 
Here is is:

Options cost would cut eBay 2002 profit 75 pct

PALO ALTO, Calif., March 31 (Reuters) - EBay Inc.'s (EBAY) 2002 net profit would have been cut by 75 percent if it had expensed employee stock options based on their market value, the online auctioneer said in its annual report filed on Monday.

EBay's 2002 net profit would have been $62.9 million, or 21 cents per diluted share, if it had used the fair-value method for figuring the cost of employee stock options, the San Jose, California-based company said in a footnote to that report.

Using a narrower accounting standard that considers only the difference between the market price of the stock and the exercise price on employee options, eBay reported a 2002 net profit of $249.9 million, or 85 cents per diluted share.

Companies have the option of treating stock options as an expense or disclosing their fair-value cost in the footnotes of their annual reports.

The Financial Accounting Standards Board, which sets accounting standards in the United States, has added a new project on stock options to its agenda. It has not said whether it will force companies to expense options, but many in the investment community expect it to do so.

High-tech companies have long used stock options as compensation and many are lobbying against such a change, which is expected to significantly reduce reported profits at many firms.

Fred
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News