Can anyone tell me in lyman terms what Expensing Stock Compensation is? Also What Asset retirement obligations

Question

I need this information for an online business course im taking

Answer 1

Looking at IBM's annual report E.S.C. just seems to be a way of making sure that people who have been compensated with stock options as part of their package have this declared in the accounts e.g. SUPPORTING STATEMENT: Current accounting rules give companies the choice of reporting stock option expenses annually in the company income statement or as a footnote in the annual report (See: Financial Accounting Standards Board Statement 123). Many companies, including ours, report the cost of stock options as a footnote in the annual report, rather than include the option costs in determining operating income. We believe that expensing stock options would more accurately reflect a company’s operational earnings.

Stock options are an important component of our Company’s executive compensation program. We believe that the lack of option expensing can promote excessive use of options in a company’s compensation plans, obscure and understate the cost of executive compensation and promote the pursuit of corporate strategies designed to promote short-term stock price rather than long-term corporate value.

Answer 2

Stock Options are executive compensation packages. But the company policy of accounting this differs depending on their policy of whether to expense it or ammortize this in the long run. When they decide to expense it then it is called Expensing stock options.
Asset retirement obligation is something like depreciation. Companies might have restrive covenents or prior obligations on assets they own. So when as you depreciate the asset how the repayment should be scheduled is dictated by the restrictive covenents with the lender which is called asset retirement obligations.

Answer 3

i assume you're unfamiliar with Bush's events on a similar time as he became into governor of Texas? Yeah, it relatively is nice. George W. Bush raided the instructor's retirement fund to place in writing tests for substantial Oil in Texas (contained in certainly one of those tax incentives and assorted business enterprise subsidies). thank you george ********* and much greater at present, Bush raided pension money on a similar time as he became into "president" --- --->Bush plans pension raid to stay afloat with the aid of Edmund Andrews Washington October sixteen, 2004 under an afternoon after President George Bush implied that his Democratic challenger John Kerry lacked "economic sanity", the administration suggested it had hit the debt ceiling set with the aid of Congress and could could borrow money set aside for federal workers' pensions till after the election." <----- you already know... you men could fairly do a sprint examine in the previous you attempt to damn Obama. it continually seems to come back lower back and bite you interior the you-comprehend-what.