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This excerpt taken from the AAPL 10-Q filed May 5, 2006. Share-Based Payment.
Under the provisions of SFAS No. 123R, stock-based compensation cost is
estimated at the grant date based on the award’s fair-value as calculated by
the Black-Scholes-Merton (BSM) option-pricing model and is recognized as
expense ratably over the requisite service period. The BSM model requires various
highly judgmental assumptions including volatility, forfeiture rates, and
expected option life. If any of the assumptions used in the BSM model change
significantly, stock-based compensation expense may differ materially in
the future from that recorded in the current period.
This excerpt taken from the AAPL 10-Q filed Feb 3, 2006. Share-Based Payment.
Under the provisions of SFAS No. 123R, stock-based compensation
cost is estimated at the grant date based on the award’s fair-value as
calculated by the Black-Scholes-Merton (BSM) option-pricing model and is
recognized as expense ratably over the requisite service period. The BSM model requires various highly
judgmental assumptions including volatility, forfeiture rates, and expected
option life. If any of the assumptions
used in the BSM model change significantly, stock-based compensation expense
may differ materially in the future from that recorded in the current period.
These excerpts taken from the AAPL 10-K filed Dec 1, 2005. Share-Based Payment, which addresses the accounting for
share-based payment transactions in which an enterprise receives employee
services in exchange for (a) equity instruments of the enterprise or (b) liabilities
that are based on the fair value of the enterprise’s equity instruments or that
may be settled by the issuance of such equity instruments. SFAS No. 123R
eliminates the ability to account for share-based compensation transactions
using the intrinsic value method under APB Opinion No. 25, and requires
instead that such transactions be accounted for using a fair-value-based
method. In January 2005, the SEC issued SAB No. 107, which
provides supplemental implementation guidance for SFAS No. 123R. SFAS No. 123R
will be effective for the Company beginning in the first quarter of its fiscal
2006. The Company’s assessment of the estimated stock-based compensation
expense is affected by the Company’s stock price as well as assumptions
regarding a number of complex variables and the related tax impact. These
variables include, but are not limited to, the Company’s stock price,
volatility, and employee stock option exercise behaviors and the related tax
impact. The Company will recognize stock-based compensation expense on all
awards on a straight-line basis over the requisite service period using the
modified prospective method. Although the adoption of SFAS No. 123R is
expected to have a material effect on the Company’s results of operations,
future changes to various assumptions used to determine the fair-value of
awards issued or the amount and type of equity awards granted create
uncertainty as to whether future stock-based compensation expense will be
similar to the historical SFAS No. 123 pro forma expense.
70 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 1—Summary of Significant Accounting Policies (Continued) Share-Based Payment, which addresses the accounting for share-based payment transactions in which an enterprise receives employee services in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. SFAS No. 123R eliminates the ability to account for share-based compensation transactions using the intrinsic value method under APB Opinion No. 25, and requires instead that such transactions be accounted for using a fair-value-based method. In January 2005, the SEC issued SAB No. 107, which provides supplemental implementation guidance for SFAS No. 123R. SFAS No. 123R will be effective for the Company beginning in the first quarter of its fiscal 2006. The Company’s assessment of the estimated stock-based compensation expense is affected by the Company’s stock price as well as assumptions regarding a number of complex variables and the related tax impact. These variables include, but are not limited to, the Company’s stock price, volatility, and employee stock option exercise behaviors and the related tax impact. The Company will recognize stock-based compensation expense on all awards on a straight-line basis over the requisite service period using the modified prospective method. Although the adoption of SFAS No. 123R is expected to have a material effect on the Company’s results of operations, future changes to various assumptions used to determine the fair-value of awards issued or the amount and type of equity awards granted create uncertainty as to whether future stock-based compensation expense will be similar to the historical SFAS No. 123 pro forma expense. 70 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 1—Summary of Significant Accounting This excerpt taken from the AAPL 10-Q filed Aug 3, 2005. Share-Based Payment, that addresses the accounting
for share-based payment transactions in which an enterprise receives employee
services in exchange for (a) equity instruments of the enterprise or (b)
liabilities that are based on the fair value of the enterprise’s equity
instruments or that may be settled by the issuance of such equity
instruments. SFAS 123R eliminates the
ability to account for share-based compensation transactions using the
intrinsic value method under APB Opinion No. 25, This excerpt taken from the AAPL 10-Q filed May 4, 2005. Share-Based Payment, that
addresses the accounting for share-based payment transactions in which an
enterprise receives employee services in exchange for (a) equity instruments of
the enterprise or (b) liabilities that are based on the fair value of the
enterprise’s equity instruments or that may be settled by the issuance of such
equity instruments. SFAS 123R eliminates
the ability to account for share-based compensation transactions using the
intrinsic value method under APB Opinion No. 25, This excerpt taken from the AAPL 10-Q filed Feb 1, 2005. Share-Based
Payment, that addresses the accounting for share-based payment
transactions in which an enterprise receives employee services in exchange for
(a) equity instruments of the enterprise or (b) liabilities that are based on
the fair value of the enterprise’s equity instruments or that may be settled by
the issuance of such equity instruments.
SFAS 123R eliminates the ability to account for share-based compensation
transactions using the intrinsic value method under APB Opinion No. 25, | EXCERPTS ON THIS PAGE:
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