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Table 41 Prevalence of erectile dysfunction Total (%) 52 Mild (%) 172 Moderate (%) 252 Complete (%) 96 ( 54)

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(or, in the case of a full value award where the employee is not required to pay for the shares, the initial measurement of compensation cost) is equal to the book value of the shares When the shares are subsequently sold back to the company, the selling price is determined in the same manner as the initial valuation (ie, book value) An employee-holder of book value shares is entitled to the same voting and dividend rights as other holders of the same class of stock Shares for which the valuations are based on a multiple of book value, or on another formula based on earnings, are similar to book value shares, and the guidance in this illustration is generally applicable to such shares (ii) Accounting by Employer for Compensation Expense As previously discussed, and as addressed in EITF Issue Nos 87 23 and 88 6, there is a distinction, for accounting purposes, between book value shares of publicly held and privately held companies Subsection 393(c)(vii) provides a detailed discussion of the accounting for these plans (iii) Accounting by Employer for Federal Income Taxes The federal income tax treatment of book value plans differ based on speci c provisions and elections made by the employee Accordingly, the authors strongly urge companies to consult with their tax advisors Suf ce it to say, the tax deduction can differ from the expense recognized in the nancial statements The treatment of this difference is discussed in Subsection 393(f), Accounting for Income Taxes Under APB Opinion No 25 (iv) Accounting by Employer for Earnings per Share For publicly held companies, book value shares that are viewed as a form of mandatorily redeemable security (see ASR No 268) should be classi ed outside of stockholders equity As a result, such shares do not increase the number of shares used in the computation of earnings per share for publicly held companies Private companies are not required to present earnings per share.

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39 37

Author Feldman [22]

(v) Illustration of a Formula Award Exhibit 396 illustrates the consequences of a hypothetical book value purchase award made by a privately held company

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FASB Statement No 123 provides elective accounting for stock-based employee compensation arrangements using a fair value model Companies currently accounting for such arrangements under APB Opinion No 25, Accounting for Stock Issued to Employees, may continue to do so; however, FASB Statement No 123 superseded the disclosure requirements of APB Opinion No 25 and is applicable to all companies with stock-based compensation arrangements Companies not electing the fair value accounting method must disclose the pro forma net income and, for public companies, earnings per share as if this method had been elected The guidance provided by FASB Statement No 123 applies equally to companies adopting the fair value accounting as to companies determining the pro forma amounts that must be disclosed if a company continues to apply APB Opinion No 25 (a) SCOPE OF FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT NO 123 FASB Statement No 123 applies to all transactions in which an employer grants shares of its common stock, stock options, or other equity instruments to employees, except for employee stock ownership plans (ESOPs) Accounting for ESOPs is speci ed in AICPA Statement of Position No 93 6,

reate a form that collects information from viewers In our example, we use this information elsewhere within the Flash file, but you can capture this information into a database or send it via e-mail by using a CGI script on the Web server Contact your Web host for further information about using CGI scripts

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