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

To: rkral who wrote (64618)	9/15/2003 10:41:58 PM
From: Don Lloyd	Read Replies (2) \| Respond to of 77397

Ron, The issue currently before the FASB and IASB is relative to option grants. Stock grants are already expensed. So what's the point in presenting a stock grant scenario? Two reasons. First, stock options would be of no value if they weren't eventual claims to stock. Stock is essentially equivalent to an option with a zero exercise price and no expiration. In most cases, if not all, arguments that relate to the expensing of options apply equally well to the expensing of stock. Secondly, the fact that expensing stock grants happens to be the current practice doesn't make it any more valid or correct. Neither new stock or option grants should be expensed. Regards, Don