To: Enigma who wrote (6524 ) 7/5/2002 3:57:24 PM From: tyc:> Read Replies (1) | Respond to Re stock options;In December 2001, the Canadian Institute of chartered Accountants issued recommendations relating to the recognition, measurement and disclosure of stock based compensation made in exchange for services provided by employees . The Company adopted the new recommendations for its year beginning January 1, 2002. The company's stock option plans provide that, on exercise, the option holder has the right, rather than acquiring optioned shares, to accept in cash an amount equal to the difference between the option price and the then market value. In these circumstances the recommendations require the Company to adopt a fair value based method of accounting whereby compensation expense will be recorded over the term that the stock options vest based on the market value of the Company's shares. As a result, a compensation expense of $.x million was recorded in the first quarter in general and administrative expenses and $.x million for the full year of 2001 was charged to opening retained earnings. In addition, the Company revalued its outstanding deferred share units at period end prices, which resulted in an expense for the quarter of $.x million. Therefore the total impact of stock based compensation in the quarter was $x.x million."
