Posts by: Daniel R
Accounting for vested but unexercised stock options...and then again when they are exercised
I believe I understand how to account for stock options on all 3 statements: NI goes down, CFFO remains neutral (ignoring taxes for simplicity) because of offsetting NI reduction and addition of same amount of stock options (non cash charges). Retained earnings goes down and then APIC goes up by the... Read More
I believe I understand how to account for stock options on all 3 statements: NI goes down, CFFO remains neutral (ignoring taxes for simplicity) because of offsetting NI reduction and addition of same amount of stock options (non cash charges). Retained earnings goes down and then APIC goes up by the... Read More
How do stock options affect all 3 statements?
If a company chooses to pay its executives in stock options amounting to $100 I assume that reduces NI by $100 (ignoring taxes for simplicity). As for the cash flow statement, NI is lower by $100, but that same $100 is added back in CFFO as a non cash item leaving that section unchanged. On the bala... Read More
If a company chooses to pay its executives in stock options amounting to $100 I assume that reduces NI by $100 (ignoring taxes for simplicity). As for the cash flow statement, NI is lower by $100, but that same $100 is added back in CFFO as a non cash item leaving that section unchanged. On the bala... Read More
Stock Options Tables in 10ks do not seem to be itemized like they are in the course
Throughout school and Wall ST Training courses I have always learned to construct fully diluted shares outstanding by looking at a table of options that presents several strike prices and several corresponding share amounts for a given year.However, in practice I rarely see stock tables in 10Ks pres... Read More
Throughout school and Wall ST Training courses I have always learned to construct fully diluted shares outstanding by looking at a table of options that presents several strike prices and several corresponding share amounts for a given year.However, in practice I rarely see stock tables in 10Ks pres... Read More
So what you are saying is:
*Asset side we have: NI -100, non-cash add back +100 = zero change on asset side
*Liabilities side we have: RE -100
THUS IT APPEARS Liabilities/SE side goes down by 100 with no corresponding decrease on the asset side? How can this work? I must be missing something.