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To: Bill Harmond who wrote (145048)8/8/2002 11:50:47 AM
From: Oeconomicus  Read Replies (2) | Respond to of 164684
 
Cisco said that going in to last year they would have had to expense options at $3 billion, and it turns out because of the bear market the the real accounting cost is one tenth that. What would they do, credit it back?

Of course not - anything that reduces reported earnings must count, even if it is just a WAG, and anything that increases it should result in jail time. Got that?



To: Bill Harmond who wrote (145048)8/8/2002 2:20:15 PM
From: GST  Read Replies (1) | Respond to of 164684
 
"Cisco said that going in to last year they would have had to expense options at $3 billion, and it turns out because of the bear market the the real accounting cost is one tenth that. What would they do, credit it back?" There would be nothing to add back -- the expense was incurred, period. This is not rocket science -- this is a basic accounting issue.