Antedating bill lading

10-Jan-2020 17:10

One of the larger backdating scandals occurred at Brocade Communications, a data storage company.

It was forced to restate earnings by recognizing a stock-based expense increase of 3 million between 19, after allegedly manipulating its stock options grants for the benefit of its senior executives.

The other major way that backdating can be misleading to investors relates to the method by which the company accounts for the options.

As a result, numerous companies are conducting internal investigations to determine if, when, and how backdating occurred, and are filing amended earnings statements and tax forms to show the issuance of “in the money” options in place of the “at the money” options that were previously reported.

This is not always the case, according to a ruling by federal judge William Alsup of the U. District Court for the Northern District of California.

Academic researchers had long been aware of the pattern, exhibited by some companies, of share prices rising dramatically in the days following grants of stock options to senior management.

However, in late 2005 and early 2006, the issue of stock options backdating gained a wider audience.

The other major way that backdating can be misleading to investors relates to the method by which the company accounts for the options.As a result, numerous companies are conducting internal investigations to determine if, when, and how backdating occurred, and are filing amended earnings statements and tax forms to show the issuance of “in the money” options in place of the “at the money” options that were previously reported.This is not always the case, according to a ruling by federal judge William Alsup of the U. District Court for the Northern District of California.Academic researchers had long been aware of the pattern, exhibited by some companies, of share prices rising dramatically in the days following grants of stock options to senior management.However, in late 2005 and early 2006, the issue of stock options backdating gained a wider audience.Many companies' stock option plans provide that stock options must be granted at an exercise price no lower than fair market value on the date of the option grant.