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To: IceShark who wrote (5517)	7/25/2000 1:47:28 AM
From: Don Lloyd	Read Replies (4) \| Respond to of 436258

IceShark - [Although, I saw a release out of the UK the other day that the international conforming body would like to slap full cost of options expense into wages measured at the time of exercise rather than the game that is now played. This would turn many tech companies into money losing operations from day one. Softie wouldn't look too hotski. The bean counters are knocking their beans all over the table, but they should calm down, as the ponzi scam ain't over yet so no chance it will get any serious attention. -ng-] The argument over the accounting for option expenses is entirely off target. The economic cost for a company as a whole of any type of stock or option grant is ZERO. All of the real cost is shouldered by the existing shareholders who are diluted in their ownership. Any outside investor will value the company exactly the same no matter how the shares in the company are distributed or how that distribution changes. The effects of option grants are denominated in terms of shares. There is no legitimate reason to try to transform them into expense dollars for the company. The problems come from the use of shareholder dollars to buy back shares to undilute the share count independent of stock price and the effects of both this and the option tax deductions that mask the real health of company operations. Regards, Don