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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Richard Forsythe who wrote (138083)	7/29/1999 8:59:00 PM
From: DellFan	Respond to of 176387

Stock option accounting is specified by FASB 123 - "fair value" based method is considered to be preferable accounting under FASB 123 - but its adoption is not mandatory. That method is summarized below. "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." Dell continues to use the "intrinsic value" based method, which is not considered to be the preferable method under FASB 123. I know this may seem to be a technical matter by nature, but the bottom line is that recognition of the cost in the income statement is preferable, and Dell does not do that. I'm not sure what companies do or don't. Maybe no company wants to be the first!