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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: rkral who wrote (64103)	5/22/2003 10:36:39 AM
From: RetiredNow	Read Replies (2) \| Respond to of 77400

Yes, that's a good point. In the Andiamo case, they aren't using Black Scholes. But Cisco has always argued that they are against expensing options period. Yet here they are doing it. It seems as if what they should be saying is, that they aren't against expensing stock options, per se, but only the method of how that cost is calculated. Then I and other investors would believe that they are inclined to do the right thing and be conservative in their accounting. Instead, their public statements are all about how expensing is wrong and they don't want to do it. BTW, I personally believe that B.S. is on one end of the spectrum and instrinsic value is on the other. My thought is that if you use B.S. and then do true-ups every quarter, with final true-ups upon exercise, then you'd get an accounting method that at least converges on the true cost throughout the life of the option, and then ultimately records the true cost at exercise or expiration.