Replies to post #45198 on Value Microcaps Motherboard

[abh3vt]

Michael T, thank you very much for your comments. Your explanations help clear up some of my confusion over the application of the rules....

It appears that option expenses will continue to appear for some time among companies that routinely use them for compensation. As they vest and are expensed over these long-term periods (3+ years), I would say that we should probably NOT exclude them from quarterly earnings as they are not one-time in nature.

Jtomm had an earlier post to me that was very eye-opening regarding this issue. He makes some excellent arguments as to why options should be counted as expenses on the income statement even though they already impact earnings via increased dilution.

[jtomm]

michaelt re: options, do you have any links that give a good summary of what the new rules are going to be when all this nonsense gets hashed out?

A CPA friend of mine refers to it as the CPA full employement act and he's been looking for a good summary himself. According to him there's about 300 pages of rules, and it takes a two-day seminar (with CPE credit) to get throught it. Lots of different ways to value things, so nothing has really changed as far as making things more transparent.