Re:Microsoft reports $22.6B in Q4 revenue
by samfisher83 on Wednesday July 20, 2016 @02:08PM
(#12131157)
That is the standard definition for accounting and has been that way for a while:
Persuasive evidence of an arrangement exists
Delivery has occurred or services have been rendered
The seller's price to the buyer is fixed or determinable
Collectibility is reasonably assured.
Stock compensation doesn't make it not an expense. It is coming from somewhere. It is coming from the equity holders pockets therefore it is a real cost.
The basic definition is Assets=Liability+Equity.
So rewriting it E=A-L
If you you pay a person with cash:
E-C=A-C-L
When you pay person with equity:
E-X where X is equity you are losing in both cases they are equivalent. So stock option are not free and need to be treated as an expense.
Persuasive evidence of an arrangement exists Delivery has occurred or services have been rendered The seller's price to the buyer is fixed or determinable Collectibility is reasonably assured.
Stock compensation doesn't make it not an expense. It is coming from somewhere. It is coming from the equity holders pockets therefore it is a real cost.
The basic definition is Assets=Liability+Equity.
So rewriting it E=A-L
If you you pay a person with cash: E-C=A-C-L
When you pay person with equity:
E-X where X is equity you are losing in both cases they are equivalent. So stock option are not free and need to be treated as an expense.