-11-
would be borne by XI. The cost equaled the stock’s market price
on the exercise date over the exercise price. Upon receipt of
petitioner’s notice specifying the appropriate amount, XI was
required to pay petitioner.
On March 31, 1996, petitioner and XI also entered into the
Xilinx, Inc./Xilinx Ireland Employee Stock Purchase Plan
Reimbursement Agreement (ESPP Reimbursement Agreement), which
allowed XI employees to purchase, with payroll deductions,
petitioner’s stock. XI was required to pay petitioner the cost
associated with the exercise of the options. Pursuant to the
agreement, the cost equaled the stock’s market price on the
exercise date over the exercise price. Upon receipt of
petitioner’s notice specifying the appropriate amount, XI was
required to pay petitioner.
V. Financial Accounting Disclosure Rules
A. Background
The Financial Accounting Standards Board (FASB) is the
professional organization primarily responsible for establishing
financial reporting standards in the United States. FASB's
standards are known as Generally Accepted Accounting Principles
(GAAP). For more than 30 years, FASB has recognized certain ESOs
as an expense to the issuing corporation.
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Last modified: May 25, 2011