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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (178)	8/14/2002 12:10:12 PM
From: rkral	Read Replies (1) \| Respond to of 786

Huey, re FASB proposal keeps the intrinsic value method... "The standard now under consideration by the FASB would continue to give companies the choice between expensing the fair value of the stock options using the three different alternatives available, or disclose their theoretical value in the footnotes of their financial reports. The board had contemplated at its last meeting to move the information containing the footnotes to the income statement, but decided Wednesday that it wouldn't be possible. Instead, the board decided that it would now require the pro forma net income and earnings per share information contained in the footnotes to be disclosed quarterly instead of once a year in the company's annual report." -- from the article Now that's rich. A company can still use the intrinsic value method .. and put the fair value results in the footnotes. So they'll be telling us quarterly, instead of annually, that the option grant expenses are ZERO. Does the FASB really think that companies are going to adopt one of the new fair value methods .. instead of the intrinsic value method? After all, the choice only reduces the option expenses for the first few years after adoption. Since the FASB is effectively doing nothing IMHO .. why are they doing anything? It appears to only be a token reward to companies that have already announced expensing of options. The FASB is showing no backbone. There must have been some really bad experiences during the 1994-95 showdown with Congress. Ron P.S. Stock Market Daffynition: BEAR MARKET -- A 6 to 36 -month period when the kids get no allowance, the wife gets no jewelry, and the husband gets no sex.