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

To: LLCF who wrote (218)	8/18/2002 11:52:18 PM
From: Exacctnt	Read Replies (2) \| Respond to of 786

<<<Yes, as can sales expectations, inventory valuations, debt convenants, pension assumptions, Accts recievable values & expected non payments, equity holdings in various parially held entities, on and on and on... what's the point?>>> The point is that the above expectations and assumptions are eventually made whole and are measured and quantified to reflect real costs or income. Stock Option expense, as it exists currently in footnotes or income statement expense, doesn't get final adjustments to reflect actual costs. <<<NTAP should be able to now deduct the value of the decay in the options back reducing it's salary expense [or better yet, have two accounts here... employee cash expenses, and options expenses] for the next year. >>> Under SFAS 123, NTAP would not be able to reduce its option expense because of a drop in its market price. Like it or not SFAS 123 is the only game in town.