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Technology Stocks : Intel Corporation (INTC)
INTC 37.89-0.1%Nov 12 3:59 PM EST

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To: Mary Cluney who wrote (55654)5/15/1998 8:15:00 PM
From: kolo55   of 186894
 
Its true... its not in the current accounting regs.

You wrote:That's not in the current definition of cost according to current accounting regs.

Before companies began to use stock options extensively back in the 80s, this wasn't as important. When it began to be a significant factor, the Financial Accounting Standards Board (FASB), tried to change the accounting regs to include the costs of stock option plans on the company's financial statements, according to the Forbes article. Dennis Bereford, chairman of FASB, said "It's hard to argue that they're any different from cash compensation or any other employee costs, FASB felt it was a cost." quoting from Forbes article

Much of corporate America lobbied against it, and killed the new accounting rule. The only thing the FASB did get through was a footnote in their financial reports.

So its essentially up to individual shareholders like you and me, to study and determine the size of the impact of this cost on reported earnings.

Paul
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