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

To: Bilow who wrote (83208)	8/22/2000 3:26:27 AM
From: Don Lloyd	Respond to of 132070

Carl - Message 14242555 "...Agreed that the stuff that applies to stock grants, free or discounted also applies to option pricing..." ---------- [...I doubt that there is a single professional accountant who would hesitate to agree that stock compensation (as opposed to the more complicated issue of stock options compensation) for employees belongs as an expense on a P&L statement. The real argument, in industry, is how much to expense options at, or whether they should be expensed or not. Your position is well beyond the bounds of the accounting profession.] I agree, but my interest lies in a consistent view of economic reality. That may or may not be compatible with accounting. If stock is expensed, it seems to me that consistency would demand that options be expensed as well. Stock is merely an option with different terms and conditions. [...In short, accountants reduce everything to money...] True. Whereas money, to an economist, is merely another good, normally the one that is most marketable and useful for exchanges. Thanks, Don