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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (60822)	8/7/2002 10:55:19 AM
From: hueyone	Respond to of 77400

They take an expense as the options are exercised not as they are granted. That's right. As far as I know, no one is arguing that the company should take the Black-Scholes value of the option granted as a line item to be expensed for tax purposes at the time it is granted. As far as I know, you are correct. Perhaps we should research the original FASB proposal that was offered back in 1994 to see whether there was mention of tax treatment. Regardless, there is no question whether companies will be able to expense stock options in some form or another on their tax returns. Indeed, they are already doing it. Best, Huey