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recovery (a two-event approach) and that the loss arising from the recognition of an environmental liability should be reduced only when it is probable that a claim for recovery will be realized The EITF also reached a consensus that discounting environmental liabilities for a speci c clean-up site to re ect the time value of money is allowed, but not required, only if the aggregate amount of the obligation and the amount and timing of the cash payments for that site are xed or reliably determinable The EITF discussed alternative rates to be used in discounting environmental liabilities but did not reach a consensus on the rate to be used However, the Securities and Exchange Commission (SEC) observer stated that SEC registrants should use a discount rate that will produce an amount at which the environmental liability theoretically could be settled in an arm s-length transaction with a third party That discount rate should not exceed the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability In addition, SEC Staff Accounting Bulletin (SAB) 92 requires registrants to separately present the gross liability and related claim recovery in the balance sheet SAB 92 also requires other accounting and disclosure requirements relating to product or environmental liabilities In October 1996, the AICPA issued SOP 96-1, Environmental Remediation Liabilities The SOP has three parts Part I provides an overview of environmental laws and regulations Part II provides authoritative guidance on the recognition, measurement, display, and disclosure of environmental liabilities And part III (labeled as an appendix) provides guidance for auditors A major objective of the SOP is to articulate a framework for the recognition, measurement, and disclosure of environmental liabilities That framework is derived from SFAS No 5, Accounting for Contingencies The accounting guidance in the SOP is generally applicable when an entity is mandated to remediate a contaminated site by a governmental agency However, the SOP does not address the following:.

(ii) Allocation of Compensation Cost Related to Variable Awards Allocating compensation cost related to variable awards to expense is more complex, because the measurement date and, thus, the nal determination of compensation cost, occur subsequent to the date of grant Total compensation cost with respect to a variable award must be estimated from the date of grant to the measurement date, based on the quoted market price of the employer s stock at the end of each interim period Compensation cost so determined should be allocated to expense in the following manner:

Functional erections 25% 43% 45% Overall, 69% 92% <24 h, 22% >7 days; 88% <30 years, 40% >50 years Dependent on patient age and duration of priapism 86% <12 h 32% 70%

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