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To: RetiredNow who wrote (64100)5/22/2003 8:18:02 AM
From: rkral  Read Replies (1) | Respond to of 77400
 
OT ... mindmeld, re "So most of these tech companies claim that their is no good way to value stock options. Yet here we have a case of them not only valuing them, but also expensing the end result, followed by true-ups."
I don't understand your point. As a CPA, you must know that accounting for variable option awards is not the same as for fixed awards. Are you saying they should be?

re "no good way to value stock options".
That comment is usually made in regard to Black-Scholes, or other, option valuation models. I don't think Black-Scholes is applicable for variable stock options. My impression is that the "intrinsic value method" applies. Do you not agree?

Regards, Ron



To: RetiredNow who wrote (64100)5/22/2003 9:30:20 AM
From: rkral  Respond to of 77400
 
OT ... mindmeld, please disregard my prior post. John has convinced me that the Andiamo options are not variable awards. Sorry.

John, I agree with you.

Regards, Ron