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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Mullens who wrote (125878)	12/5/2002 8:20:13 PM
From: hueyone	Respond to of 152472

No cost to the company if issued from treasury stock & therefore no expense. I believe Carranza said there should be an expense at exercise regardless of whether the company issues shares from treasury or buys shares in the open market. I think part of the problem is that there are too many experts and not too many agree. I am fairly certain that the vast majority of finance and accounting scholars, who are not trying to protect a position where they would lose money were options expensed, agree that stock options should be expensed at date of grant. From the letter to the WSJ by the Harvard guys that I posted below: There are some issues on which accounting and finance professors disagree, but the expensing of employee stock options is not one of them. Despite the pronouncements of a few renegades in our disciplines, we believe there is near unanimity of opinion among scholars in the fields of accounting and finance that the value of employee stock options should be expensed on a firm's income statement at the time they are granted. Best, Huey