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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Bilow who wrote (83015)8/16/2000 3:39:58 AM
From: Mama Bear  Read Replies (1) | Respond to of 132070
 
OK, so if the theoretical cost of options are listed as an expense, shouldn't the reduction in compensation be accounted for as income?

"Could it be that the real problem you have with the concept is the nebulous technique for determining the value of the option at the time of grant?"

No, not at all. But there are other considerations that can be given in return for the options besides money. If the company is receiving a valuable service in return for the option, it can be the same as being paid in cash.

Regards,

Barb