Qualcomm Moderated Thread - please read rules before posting Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 178.29

-1.6%

Dec 12 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Art Bechhoefer who wrote (22361)	5/9/2002 12:15:48 PM
From: propitious7	of 196961

pegaso - rule on default art i don't know which FASB you are referring to. i am sure there is no blanket rule that in event of default (presumably continuing past date for fiscal period reporting), lender must write loan value to zero (reserve 100% on balance due). there are many types of default, e.g. failure to timely deliver financial statements; there are grace periods for payment defaults. banks usually put a loan on non-accrual 90 days after date for a payment which is not made when due (after grace). QCOM reacted much more swiftly in all of Gstar, Vesper and Pegaso. I inferred it was 'conservative acctg practice" but you point out that there is a FASB requiring imediate action. that may be so but i doubt very much that FASB requires 100% reserve for late payment of interest.In any event on return of debt to current status, QCOM will book at least cash received as interest, late interest and deferred fees (WOW did you notice that $5M capitalized fee in the $40M interim loan advance??) as income in QSI segment; and if they have reserves agt pegaso loans, they probably would reverse reserves, which reversal would also run through the income statement (though it's not cash income) and back into retained earnings. Release noted on this Board yesterday indicates that Telefonica will merge Pegaso into its Moviles Mexico operation, thereby creating a much larger balance sheet (and i hope healthy income statement) on which the QCOM debt will be a liability. propitious

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next