Employee Stock Options Must be Treated as Expenses

Posted by michael on Friday December 17, 2004 @03:16AM from the rated-b-for-bottom-line dept.

currivan writes "In a move that's been in consideration for a long time, the Financial Accounting Standards Board (FASB) approved new rules requiring employee stock options to be treated as expenses for reporting purposes. One of the reasons so many tech companies have given options to IT/engineering workers is that until now, they haven't counted against profits in quarterly reports. If markets were truly efficient, this wouldn't make a difference, but in reality, the tech industry is strongly opposed to the rule, though it should please Warren Buffett."

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Employee Stock Options Must be Treated as Expenses

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