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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: sandeep who wrote (72160)	8/15/2002 3:05:24 PM
From: jonkai	Respond to of 74651

I think most companies don't reprice options because of some SEC regulations which have to show that as an expense. Or maybe one has to restate results (at least for MSFT) because their results do break out earnings with effect of ESOs. this is correct.... and this is why MSFT "reissued" replacement options rather than "repricing" them.... there by side stepping the damming thought of restating their results.... they would have had to show MASSIVE LOSSES if they had "repriced", but their accountants are creative, they found a way around the rules.... and when they can't find away around a GAAP rule, they lobby congress until they change the rule or keep a new rule from coming to the FASB..... jon.