Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 37.83

-4.2%

3:59 PM EST

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To: BelowTheCrowd who wrote (180934)	4/28/2005 8:53:47 PM
From: rkral	Read Replies (2) of 186894

OT ... BelowTheCrowd, re "the [ed: option repricing] practice now incurs a tax liability." I've never seen anything to indicate the taxman is involved with option repricing. Have you got something to back that up? However, effective July 1, 2000 FASB FIN 44 made repricing of fixed options relatively unattractive ... by requiring expensing of the repriced option. Reducing the price of a fixed option award (repricing) requires variable accounting for the modified award. See paragraph 39 of fasb.org Similarly, cancelling an existing fixed option award and granting a replacement fixed option award at a reduced exercise price within 6 months of the cancellation, requires variable accounting for the replacement award. See paragraph 43 of fasb.org Variable accounting means the option award must be expensed. Ron

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