Higher Stock Price Causes Corporate Quarterly Loss - Stock options are to blame

Follow the link to an interesting article about the risks of cash-settled equity.  Barnwell, the company in this story, had a good quarter wiped out because their cash-settled options (more likely SARs, but the author does not state this) have to be accounted for as liabilities.  As the price rose, the vested options gained in value.  This liability directly impacted their quarter even though most people did NOT exercise.

enjoy the read.

http://bit.ly/iWx5hD