This excerpt taken from the VOD 20-F filed Jun 14, 2007.
Effective January 1, 2003, the Partnership adopted the fair value recognition provisions of Statement of Financial Accounting Standards (SFAS) No. 123, Accounting for Stock-Based Compensation, prospectively as permitted under SFAS No. 148, Accounting for Stock-Based Compensation Transition and Disclosure, and accounts for Value Appreciation Rights (VARs) and Restricted Partnership Units (RPUs) issued to employees accordingly. There was no material effect on the Partnerships results of operations or financial position upon the adoption of the fair value recognition provisions of SFAS No. 123 as the Partnership was accounting for these awards using a fair value approach under Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations. On January 1, 2006 the Partnership adopted SFAS No. 123(R) Share Based Payment which eliminates the alternative to use the intrinsic value method of accounting that was provided in SFAS No. 123. The Partnership recorded a cumulative effect of adoption as of January 1, 2006 to recognize the effect of initially measuring the VARs granted under the 2000 Verizon Wireless Long-Term Incentive Plan at fair value utilizing a Black-Scholes model. The Partnership records a charge or benefit in the consolidated statements of operations and comprehensive income in selling, general and administrative expense each reporting period based on the change in the estimated fair value of the awards during the period (see Note 11).