Computer Associates to Expense Stock Options
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Reuters
Computer Associates International Inc., the world’s fifth-largest software maker, said it will begin treating stock options as expenses starting in April, trimming annual earnings by 2 cents a share.
Computer Associates will treat the options as an expense based on the fair value on the date the options are granted.
Critics of omitting stock options from income statements have said that the practice inflates profits by understating expenses.
Computer Associates shares rose 60 cents to $8.70 on the New York Stock Exchange.
