Q: As per my question back in July the value of the options are supposed to be accounted for on a quarterly basis in the payables. Directly to my question if we were ganna have to wait many more years before they have little effect on the financials, your answer was:
``Much of these expenses are reported on the financial statements each quarter at fair value, and so although they might have a vesting period of three to five years, the fair value expense of these are recorded. When the DSUs vest, there should not be a material change to the income statement since the options were already accounted for using their fair value over the previous financial statements.
Even though the stock price has risen dramatically over the years, this increase has been accounted for on the financial statements already. A decrease in share price quarter-to-quarter can actually benefit the financials as the fair value of these expenses can decline. ``
What happened in the last quarter reporting then? Weren't the options valued correctly just 3 months ago?
Hard for me to wrap my head around this situation with HPS. It just feels that there is more money flowing into the pockets of the directors at the cost of my investment.
Yves
``Much of these expenses are reported on the financial statements each quarter at fair value, and so although they might have a vesting period of three to five years, the fair value expense of these are recorded. When the DSUs vest, there should not be a material change to the income statement since the options were already accounted for using their fair value over the previous financial statements.
Even though the stock price has risen dramatically over the years, this increase has been accounted for on the financial statements already. A decrease in share price quarter-to-quarter can actually benefit the financials as the fair value of these expenses can decline. ``
What happened in the last quarter reporting then? Weren't the options valued correctly just 3 months ago?
Hard for me to wrap my head around this situation with HPS. It just feels that there is more money flowing into the pockets of the directors at the cost of my investment.
Yves
5i Research Answer:
Our prior answer should have had an addendum: Our statement was correct, BUT...if a company...