Backdating definition Webcam sex in usa

21 Sep

Backdating is usually illegal; for example, one may use backdating to evade taxes.

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In 1972, a new revision (APB 25) in accounting rules resulted in the ability of any company to avoid having to report executive incomes as an expense to their shareholders if the income resulted from an issuance of “at the money” stock options.

Under most circumstances, backdating is seen as fraudulent and illegal, although there are some situations in which backdating can be used in a legal and beneficial way, such as backdating a claim for a past period.

Sometimes certain claims (such as insurance claims) can be backdated if the could not be completed at an earlier date, although there must be good reason for neglecting to claim in advance.

In this way, the exercise price of the granted option can be set at a lower price than that of the company's stock at the granting date.

This process makes the granted option in-the-money and of value to the holder.