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To: Boca_PETE who wrote (4456)4/12/1999 3:44:00 PM
From: Sun Tzu  Read Replies (1) | Respond to of 15132
 
>> It took an act of congress to stop the FASB from always requiring such absurd accounting

I agree with most of what you said, but you lost me here. My background is in Canada and there when you report EPS, you have to include all in the money options as part of the shares. To my understanding, US did not have such a requirement (a mistake IMO) and only recently started to do so. Are you telling me that the requirement is no longer there? Also, while it is true that strictly speaking no assets leave the company to pay the employees option compensations, in reality many (most?) stock buy back plans are geared towards counteracting the employee option plans. Thus assets do leave the company to pay for employee option plans. I am not aware of the details of the laws though, so perhaps the implementation of it was wrong.

Sun Tzu