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Technology Stocks : Wind River going up, up, up!

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To: Pirah Naman who wrote (3365)6/30/1998 10:11:00 PM
From: Michael Greene  Read Replies (1) of 10309
 
Summary of FAS 123

The Financial Accounting Standards Board summary of FAS 123 can be found at rutgers.edu

Under the fair value based method, compensation cost is measured
at the grant date based on the value of the award and is recognized
over the service period, which is usually the vesting period.

The fair value of an option estimated at the grant date is not
subsequently adjusted for changes in the price of the underlying
stock or its volatility, the life of the option, dividends on the stock, or the risk-free interest rate.

The pro forma amounts required to be disclosed by an employer ... will reflect the difference between compensation cost, if any, included in net income and the related cost measured by the fair value based method defined in this Statement, including tax effects, if any, that would have been recognized in the income statement if the fair value based method had been used.
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