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To: chaz who wrote (474)	8/22/2002 7:24:52 PM
From: hueyone	Read Replies (1) \| Respond to of 562

Any interest? Maybe, but I need to understand the accounting for restricted stock better. By the way, restricted stock, stock appreciation rights (SARs), and performance options all generate an expense on the income statements at one time or another. It is an accounting inconsistency that FASB is well aware of that stock options do not generate an expense on the income statement---even when exercised. Theoretically folks could make many of the same arguments as for when and how to properly value a grant of restricted shares as they could make for when and how to properly value stock options, but I guess in the case of valuing and expensing a restricted share grant, there is already a generally accepted accounting practice in place. But similar to the vesting period for stock options, we do not know what the value of the restricted stock will be once the restrictions are off. Are restricted share grants valued at face value at grant or are they valued according to a binomial model that would estimate the future value of the shares when the restricted period is over?---similar to estimating the future value of a stock option when the vesting period is over. We also may wish to investigate Bill Miller's alternative proposal to stock options--if he offered one. Perhaps we should move the conversation over to Ron's employee stock option thread so folks interested in other topics have their space here. Also, I won't be able to participate anymore for the remainder of the day. Here is the URL for Ron's stock option thread. Although there are a few more posts in favor of expensing stock options than against expensing stock options, opposing posts are welcome--as are alternative ideas such as yours. Subject 53027 Thanks for the suggestion. Best, Huey