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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 252.74+0.3%Jan 28 3:59 PM EST

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To: Petz who wrote (155653)4/11/2005 7:01:55 PM
From: brushwudRead Replies (1) of 275872
 
Will there by charges for already-granted options when options expensing starts, or will they only have to expense new options? I think your point was that if they have to expense already-granted options, any that have been already exercised do not have ot be expensed at all.

I'm unclear whether they have to expense options which were already granted but are still vesting. Options which are exercised had already vested and would already have been expensed under the new scheme.

If they have to expense already-granted options, then do they value them as of July 1 and then amortize the cost over the remaining lifetime?

Or do they value them at the date they were granted, figure out how much should have been already amortized, and then amortize the remaining value until expiration?


Both sound wrong. They won't amortize over the "lifetime" (until expiration), but over the vesting period. Also, I'm not sure if the new rule must go into effect in the first fiscal Q after June 15 or in the first fiscal year.
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