Cisco Systems, Inc. (CSCO) 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 : Cisco Systems, Inc. (CSCO)

CSCO 76.34

+0.3%

2:10 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: RetiredNow who wrote (67214)	3/7/2005 8:38:15 AM
From: GVTucker	Read Replies (4) of 77400

mindmeld, RE: Wow. Now I am beginning to see why tech execs don't want to expense stock options. I think it is completely bogus to force companies to put an expense on the books and then not let them carry that same expense come tax time. If it is a cost of doing business, then it should be deducted from earnings for SEC reporting purposes and tax purposes, period. You're way off base here. Stock options are already expensed come tax time. This has been the case forever. The change in GAAP accounting for stock options won't change the tax books at all. This is the main reason why I am so disgusted with a lot of the anti-expensing lobby. They claim that stock options expense is a phantom expense, that it isn't correct because they can't accurately measure stock options expense. And yet they have been deducting that expense off their taxes for quite a long time. It is why Cisco didn't pay any corporate tax at all in 2000, even though they had billions in net income. The stock option expense that year was huge, and it was deducted off their taxes, even though it didn't affect the earnings reported to the SEC.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next