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Following is a link to an article discussing the accounting rules related to stock options including SFAS 148 which is the most recent standard that applies to valuing stock options.

Is the intrinsic value method is still an allowable method for valuing stock options under GAAP?

http://www.nysscpa.org/cpajournal/2004/604/essentials/p20.htm

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Is the intrinsic value method is still an allowable method for valuing stock options under GAAP?

No, the intrinsic value method cannot be used. As per SFAS 123, it eliminates the alternative that companies had to choose between the intrinsic value method and the fair value ...

Solution Summary

Following is a link to an article discussing the accounting rules related to stock options including SFAS 148 which is the most recent standard that applies to valuing stock options.

Is the intrinsic value method is still an allowable method for valuing stock options under GAAP?

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