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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (70496)	11/14/1999 8:51:00 AM
From: Freedom Fighter	Read Replies (1) of 132070

Mike, >>The reason they can't expense research costs is because research conducted for several years would all be expensed in the takeover quarter, which wouldn't produce an accurate approximation of quarterly operating earnings.<< Hasn't the company that's being acquired already expensed all that R&D? To me that's the issue. It's either an asset and should have been capitalized initially or it's an expense and shouldn't have to be written off by a company like Cisco when they acquire the process R&D. It's being handled inconsistently from an accounting perspective. Wayne

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