This excerpt taken from the ENTN 10-K filed Mar 8, 2006.
Adoption of the Financial Accounting Standards Boards (FASBs) Statement 123(R) will adversely affect our results of operations, and changes to existing accounting pronouncements or taxation rules or practices may adversely affect our business, financial condition or results of operations.
In December 2004, the FASB adopted Statement 123(R), Share Based Paymentan Amendment of FASB Statements No. 123 and supersedes APB Opinion No. 25, which requires us, starting in the first quarter of 2006, to measure compensation costs for all stock-based compensation (including stock options and our employee stock purchase plan) at fair value and take a compensation charge equal to that value. We believe the adoption of SFAS 123(R) will have a significant negative impact on our results of operations, but will not significantly impact our financial position or cash flows. A change in accounting pronouncements or taxation rules or practices can have a significant effect on our reported results and may even affect our reporting of transactions completed before the change is effective. Other new accounting pronouncements or taxation rules and varying interpretations of accounting pronouncements or taxation practice have occurred and may occur in the future. This change to existing rules, future changes, if any, or the questioning of current practices may adversely affect our reported financial results or the way we conduct our business.