Silicon Valley is finally paying more attention to Wall Street demands that options be treated differently. I am on the fence in this debate. I see the value of options for small tech startups, but I also agree that their use needs to be accounted for in financial statements. I really don't care, though, how they are valued and whether or not they are expensed. It's just an arbitrary choice, like many of the GAAP principles seem to be. The important point is that the information is out there in some form so that investors can understand the potential for earnings and ownership dilution, and value the stock accordingly.