20 Sep 2004
By AccountancyAge.com
Cisco Systems, Genentech and Qualcomm, have all urged the FASB to take an alternative route to valuing options and are advocating what they call a fair value index-adjusted model that would, they claim, slash implementation costs by 70%, Investor Relations Magazine reported.
The general feelings is, though, that the FASB will go ahead and implement the rule, although one legal expert said it was still possible the rule could be modified.
Expensing stock options has already been adopted by companies like Coca-Cola and Amazon, but most technology companies are against it because valuations suffer from higher volatility, which is a major factor in determining option costing.
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