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Re: olddog967 post# 100558

Saturday, 04/02/2005 11:07:15 AM

Saturday, April 02, 2005 11:07:15 AM

Post# of 436033
Thanks olddog. Still not clear on how a company making RSU grants does the expense accounting on those grants. Thinking about the debates over having firms use something called the "Black-Scholes"(sp?) method to estimate the "costs" of stock grants and options. Seems like that has something to do with estimating value over time???

Understand a bit about how options work from an employee point of view(i.e., date of grant locks in the strike price available for exercise after they vest, personal income tax liability is incurred on the difference between market price and strike price at the date of each exercise, cost basis on those shares for personal income tax purposes is....), but the new deal requiring firm's to enter some form of "cost" on THEIR accounts for grants and options is very fuzzy.
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