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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Art Bechhoefer who wrote (121744)	7/18/2002 11:05:44 AM
From: hueyone	Read Replies (1) \| Respond to of 152472

Does Q expense options? Yes, when the options are exercised. That's the way the current law is written. You footnote the options and expense them when they're exercised. The cost is equal to the difference between market price of the shares and what the executive has to pay. That is a terribly misleading answer Art. Although QCOM arguably expenses options at time of exercise to the IRS (which effectively results in the tax benefit for exercise of stock options), they do not expense options on their income statements provided to shareholders. I am quite sure this is the question for which the poster wanted an answer. So the answer is "No, QCOM does not expense stock options on the income statements provided to shareholders." Huey

To: Art Bechhoefer who wrote (121744)	7/18/2002 1:42:21 PM
From: A.L. Reagan	Read Replies (1) \| Respond to of 152472

Some people ought to take at least one course in intermediate accounting, including the section "how to read financial statements," prior to issuing off-the-cuff pontifications. *** The proposed law does not mandate expensing of stock options - it merely conforms tax and book reporting. For my two cents as a taxpayer, I don't see why a firm should get a tax deduction for what they don't consider an expense. There is no "law" which mandates any particular treatment of stock options - other than as generally applies to financial statements of SEC registrants conforming with GAAP.