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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Umunhum who wrote (10557)	3/21/2004 6:04:46 AM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 110194

we are living in "interesting" times

To: Umunhum who wrote (10557)	3/21/2004 12:41:43 PM
From: ild	Respond to of 110194

I recall reading something that options expensing would be in part because some rules in Europe will require this from Jan 2005. Some companies like Juniper that showed some little earnings would go deep in red. All the tech companies re-priced their option or gave more options at the prices that are 1/3 from the current levels. I'm sure shareholders wish they could re-price their holdings. -g- Stock options is a nice way of wealth transfer. Found some info: Since expensing stock options is an accounting issue, I think that “real” change will come from the International Accounting Standards Board’s actions in Europe. IASB has unanimously approved a draft of new accounting rules that would require companies to expense stock options. The rules would require companies based in countries that adhere to them to make the switch beginning in 2004. The accounting treatment is expected to add to the chasm between U.S. standards, governed by FASB, and the international rules, which the European Union plans to adopt in 2007. Many analysts believe that, because foreign companies use options less than U.S.-based ones, the effect of expensing those options will be smaller overseas. In fact, many believe that earnings for the S&P 500 would have been 30% lower last year if all stock options had been expensed, while earnings for European companies would have fallen just 10%.