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The FASB's own definition...
of expense is a decrease in one's net assets. I don't believe that the stock options reduces the net assets of the employer. It may in fact reduce the net assets of the stockholders as individuals, though. But that has nothing to do with the net assets of the company/employer.

I agree that shareholders need to be aware of the impact on their holdings. But I am very sure that all of this would be addressed at the stockholders' meetings. If a stockholder (no matters how big or little) doesn't make the meetings, that is his fault. If you are an owner of a business, you need to make the meetings.

Stock options do not reduce the net assets and therefore are, by definition, not expenses.
Posted by: bjbrock   Posted on: 07/20/04 You are currently: a Guest | Members login | Terms of Use

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Money doesn't grow on trees  Nigel Johnstone | 07/20/04
I'm guessing...  rapson | 07/20/04
Quite the opposite I think  Nigel Johnstone | 07/20/04
... But Options Do  Dan__ | 07/20/04
The 10k is for the investors  Nigel Johnstone | 07/20/04
I have to agree...  el1jones | 07/20/04
The FASB's own definition...  bjbrock | 07/20/04
Expenses affect Income  nomorems | 07/20/04
Expense or not  Domb2 | 07/21/04
Expensing options could make your income negative  Dan__ | 07/27/04
The FASB and other proponents...  bjbrock | 07/20/04
Again  nomorems | 07/20/04
Message has been deleted.  linuxcad_is_crap | 07/20/04
Message has been deleted.  linuxcad_is_crap | 07/21/04
Only in Washington...  NobodyHome | 07/22/04

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