Comparison of APB 25 vs SFAS 123….APB 25 asked for comp charge for in-the money options. Witness is giving his take on the HR New Hire Stock processing doc. Stock pricing was different than the Accounting understood. Process was Comp comm would meet then decide price and use the stock from that date.
Lookback -surprised current CFO Brocade…not sure if illegal.
Witness-it went against his understanding of how the HR Department at Brocade should handle choosing a stock price.
Reviewing KPMG comfort letter. CFO signed it in 2003 he took it very serious.
