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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (11082)	3/31/2004 10:15:39 AM
From: Biomaven	Respond to of 52153

FASB did release its exposure draft as scheduled. Any masochists may download it for themselves at: fasb.org Not huge changes from the current FAS 123 except that it becomes compulsory for options granted after the proposed adoption date, which is for fiscal years beginning after Dec 15, 2004. Some tweaking around the edges, including the preferred use of a lattice valuation model rather than the closed-form Black-Scholes. (This would serve to reduce the expected expense, likely by about 10-15% compared with the existing FAS 123). (The lattice model allows the modelling of the interaction between stock prices and early exercise activity that you see with employee options as distinct from traded options.) Peter