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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (2442)	4/23/2003 2:56:45 PM
From: Boca_PETE	Read Replies (3) \| Respond to of 10065

Wally M: re:("(FASB Backs Rules Change on Stock Options") - One small step backwards for the FASB. - One giant step backwards for the language of business - accounting. No matter what methodology they come up with, nothing can change the economics of employee stock options. They can't be a true expense of companies because companies pay out zero cash for stock options - they receive cash from employees for the sale of company stock. Employee profits from selling company stock bought under stock option plans are received directly from other company shareholders buying such stock from employees, not from the company. This fantasy stock option expense will always be backed out of the Statement of Cash Flows because of this reality. This will be so whether or not such stock option expense is included or excluded in S&P "Core Earnings". It's all a sad and perverse joke - a politically correct frammis scammis! Other than that, I don't have any strong feelings about this issue <grn>. P