Today was a pretty good day for me. I spent some time figuring out how to account for stock options given as compensation for employees. My company uses stock options regularly as signing and annual bonuses, and until today, nobody here really knew how to account for them. Well, I read the accounting guidance, and looked at the auditors calculation for 2006, and I feel like I got a pretty good handle on things.
For those readers who may not be accountants, accounting for stock option expense is one of the more “technical” bits of accounting. The literature uses a lot of terms of art, and you have to determine things like volatility of the underlying stock, and the fair value of the option. (We use the Black-Scholes model, for those who are interested.) All in all, it’s now 7:15 pm, and I just finished putting together the spreadsheet that will handle the appropriate calculations, and figure our expense for each month. It feels really good to be done with that.
Now I’ll go home and take my stripes from Julie for not being home for dinner. Doh!
2 comments:
AHHH SNAP DAWG!!!! Yo I was not thinkin' that you'd be gettin' done wit dat any time soon, but dang gina you used the black-scholes model and everything. You is the MAcc daddy.
Yo dawg. Ah cain't stop laffin', yo. Peace, mah brothuh.
Post a Comment