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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: NITT who wrote (177832)	5/7/2004 8:31:01 AM
From: GVTucker	Read Replies (1) \| Respond to of 186894

NITT, RE: How is reporting, as an expense, the value of an option granted to employees "proper" when no cash changes hand and there is not a black and white valuation method for non-open market options available to assure reporting consistence from company to company and it is thought to be improper to requiring companies to disclose the black and white facts of a stock option program. Estimates are made all the time in accrual accounting. Pension accounting, lease expense, depletion, it goes on forever. In each of those situations, there is no black and white valuation method available. The best that can be done is to use an estimate and disclose the method of estimation. As to your other point, expenses are charged when no cash changes hands all the time.