Account for options, forget about profits.
Irvine chipmaker Broadcom Corp. said treating stock options as expenses would have cost some $677 million last year and resulted in a loss.
Broadcom would have lost about $395 million last year instead of posting a $207 million profit, according to a Reuters story based on the chipmaker’s annual report.
The Securities and Exchange Commission plans to require companies to account for options as expenses starting in June.
“The adoption of (those rules) will have a significant impact on our reported results of operations, although it will have no impact on our overall financial position,” Broadcom said in its annual report.
