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Of course you count stock options as an expense. If the event results in a loss of value for existing investors isn't called a loss what should it be called?
by meric 14y ago
Of course you count stock options as an expense.
If the event results in a loss of value for existing investors isn't called a loss what should it be called?
- ahi 14y agoRight. If it wasn't stock options it would be salary.
- ChuckMcM 14y agoThis is a troll obviously but for those of you too young to remember, this link captures most of the debate: http://www.nysscpa.org/cpajournal/2005/1105/essentials/p38.htm http://www.nysscpa.org/cpajournal/2005/1105/essentials/p38.h... From that page is this quote: "David Zion, an analyst at Bear, Stearns & Co., estimated that S&P 500 companies would have reported an average of 9% less earnings in 2000 if options had been expensed on the income statement. For tech companies, this reduction would have been even greater; for some, profits would have turned to losses." Which is the case for Facebook (profits turning to losses).