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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (169535)	8/20/2002 12:53:48 AM
From: ted burton	Read Replies (2) \| Respond to of 186894

RE:The recent meetings at FASB were limited scope meetings conducted primarily for the purpose of providing alternatives for companies transitioning to expensing stock options on the income statements. This fall, the IASB, International Accounting Standards Board, will be releasing its proposal to require companies to expense stock options in reported earnings using the fair value approach. The FASB doesn't hide the fact that they are in favor of the same, but last time they made that decision in 1994, a Congress well bribed by Silicon Valley lobbies threatened to shut the FASB down. With the IASB standing up to do the right thing (imo), perhaps FASB will be emboldened to follow suit. I view more transparency in the information provided to shareholders as a good thing for shareholders. Do you know any details/specifics? Would they expense the options only when they are exercised? Until they are exercised I don't see what value/cost (employee/employer frame of reference). Paper fortunes come & go quickly with stock options. If a company had to expense options which were merely vested rather than exercised, wouldn't it create a situation where companies with falling stock prices would be rewarded with decreasing costs (& inverse wierdness when prices went up). I'm an engineer, not a bean counter. I'm curious, not pressing a point. Thanks -Ted