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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, 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.

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WestAmerica: Man Bites Dog
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Posted by: Jack Ciesielski 2/27/2007 6:45 PM
Make that "stock comp error correction treats shareholders well." Ah, no. More descriptive, but lacks punch.

WestAmerica Bancorporation filed its 10-K yesterday, and revealed a SAB 108 correction for the overaccrual of liabilities related to employee stock-based compensation.

It was a minor amount - $3 million pretax, $1.8 million aftertax - especially when compared to stockholders' equity of $424 million. The interesting thing is that it was a reduction of other liabilities for the compensation, and an increase to stockholders' equity.

When you think of error corrections involving stock compensation, you have a tendency to think in the reverse direction. Truly a case of "man bites dog."
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