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The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis. All posts prior to September, 2007 are in the public domain, but after September 4, 2007, only subscribers to The Analyst's Accounting Observer will see all posts going forward. Only selected, occasional posts will be released to the public domain from September 4 forward.

Mail Call, 12/20/05
Location: BlogsAAO Weblog (Public)    
Posted by: Jack Ciesielski 12/20/2005 7:29 AM
From friend Tim L., a statement from an unnamed CEO of an unnamed company:

"Because the accelerated options are significantly underwater, the accelerated vesting will avoid the unfair representation of the company's compensation costs that would arise from recognizing future accounting expenses that significantly exceed the current fair value of the associated stock options. Avoiding this stock option expense will better reflect the true economic realities of these stock options.

Do you suppose he is writing to the FASB urging the adoption of exercise date accounting that he clearly thinks is the fair representation?"

Umm... no. But I suspect we'll see a lot more of this brain-numbing double-speak starting in the first quarter of 2006, when the whole world reports earnings with all stock compensation included in them.

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Apologies in advance: postings are going to be slim this week. The holidays, yada, yada, yada, Accounting Observer piece, yada, yada, yada. And they'll be scarcer next week: I'm going to take five. I suspect that the rest of the world will too, so let's all come back fresher in 2006.
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