While I have many areas of disagreement with accounting, there are three accounting practices that I have taken particular issue with over time. 1. Not treating employee options as expenses when granted: There should really be no debate about this. Employee options are compensation, and like all other compensation expenses should be recorded at fair value, when granted. The fair value is the option value and not the exercise value.
Are accountants learning?
Are accountants learning?
Are accountants learning?
While I have many areas of disagreement with accounting, there are three accounting practices that I have taken particular issue with over time. 1. Not treating employee options as expenses when granted: There should really be no debate about this. Employee options are compensation, and like all other compensation expenses should be recorded at fair value, when granted. The fair value is the option value and not the exercise value.