Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Art Bechhoefer who wrote (130120)	7/11/2003 1:59:41 AM
From: hueyone	Read Replies (2) \| Respond to of 152472

Once the option can be exercised, it should be fully expensed. Yes, I understand what you are proposing, and I am suggesting be careful what you wish for. You may find your method results in higher expenses for your company in the long run than simply using the Black Scholes values and expensing per SFAS 123, the method many tech fans complain about---although this may not be a concern for you. When I have some extra time, I will compare the two methods for QCOM over the last seven years and see which results in a higher expense---unless Rkal or JS beat me to it.<g> I am glad to see you are in agreement that stock options are an expense, but are interested in looking at a different way of handling and reporting that expense. Personally, I believe there was plenty of solid accounting theory behind the 1993 FASB proposal to expense stock options---using a binomial method to estimate the expense and amortizing the expense over the vesting period, allowing for adjustments if the options were forfeited or not earned, but that is just my opinion and the accountants' opinions who wrote the proposal. nysscpa.org Regards, Huey