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To: Don Lloyd who wrote (179971)7/15/2002 3:12:20 PM
From: LLCF  Read Replies (1) | Respond to of 436258
 
<Double counting is double counting. >

You dont' HAVE to double count.

<Cash salaries flow out from the company. Stock grants attach new owners to the company. >

Stock grants in order to pay employees is pay... it also attaches new owners.. this is not mutualy exclusive. In the case of options it could be 'deferred new ownership account' vs compensation... non cash charge. There are any number of ways to account for it so an expense shows up the compensation column and an offsetting account to avoid double counting... and as the options decay you reverse the charges each quarter.

Stock grants ARE stock grants and can't decay, so perhaps footnotes on compensation expense would be good enough.

DAK