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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.11+0.9%Nov 21 9:30 AM EST

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To: GVTucker who wrote (67265)3/9/2005 4:15:29 PM
From: Lizzie Tudor  Read Replies (2) of 77400
 
wrong- Google did not expense EMPLOYEE options. They were forced to expense options that were used in payment to services already rendered like headhunter fees.

If you are under the impression that google is expensing employee options now, you are incorrect.

Although more than 500 companies have voluntarily begun deducting employees' options expenses from earnings -- something that will likely be mandatory in a few months -- Google isn't among them. As a result, its earnings will be legally, but artificially, inflated, and shareholders who want to know the truth will have to comb through the footnotes. Of course, Google will continue to expense some stock-based expenses, such as payments to vendors -- about $230 million worth. But by not expensing employee options, it will avoid a huge hit to earnings.
yahoo.businessweek.com
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