Slashdot Mirror
The Coming Expensing of Employee Stock Options
An anonymous reader writes "This accounting change will reverberate loudly throughout geekdom.
"Users of financial statements...expressed to the FASB their concerns that (the current handling of stock options) results in financial statements that do not faithfully represent the economic transactions affecting the issuer, namely, the receipt and consumption of employee services in exchange for equity instruments. Financial statements that do not faithfully represent those economic transactions can distort the issuer's reported financial condition and results of operations, which can lead to the inappropriate allocation of resources in the capital markets." Taken from FASB Statement of Financial Accounting Standards No. 123 (Dec 2004). A
FAQ has been published as well." Yes; the data is from 12/16/04, but this will be a huge change in how tech companies work.
FASB is run by a bunch of dumb asses who need to come up with new shit every year to justify their stupid government job.
Tax Code:
Income (Money paid for services, money selling expensed items)
-Expenses (Screw depreciation, etc. Immediate for everything)
---------
Net Income
- Tax Rate
----------
Profit
How fucking hard does a tax system need to be. As a small business owner it's a god damn joke. Mind you I have a degree in Finance and I only needed 2 classes for a degree in Accounting as well. After working for Andersen and seeing all the BS that happens in corporate america we need to vastly simplify the system and be done with it. Quit with the fucking subsidies for the GE, Microsoft and Ford's of the world. This country is too deep into the bullshit we've created. I mean sending people to PRISON for copying some fucking bits? Unbeliveable.