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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?


To: Vector1 who wrote (6846)7/31/2002 2:20:33 PM
From: Biomaven  Respond to of 52153
 
The new accounting regulations give all options repricings (except for the "six months and a day" cancellation/regrant version) variable accounting treatment. This means a hit to earnings any quarter the stock price rises.

Very few companies have gone this variable accounting route since these new regulations. Of course if you adopt FAS 123 you get better treatment (it's a one-time charge).

Peter



To: Vector1 who wrote (6846)7/31/2002 2:34:46 PM
From: Harold Engstrom  Read Replies (1) | Respond to of 52153
 
Great suggestion.

I am seriously thinking about not using the option plan we have approved, except in special cases. The substitute would be bonuses tied to positive cash flow.

H