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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 75.19

-0.1%

Jan 16 9:30 AM EST

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To: M. Charles Swope who wrote (37929)	6/25/2000 2:36:00 PM
From: JDN	Read Replies (1) of 77400

Dear Charlie: No, you are wrong. Remember the concept, "LOWER of cost or market". So the tangible property cannot be value greater than current market value (ie appraised value). The "goodwill" aspect that has many in the tech field upset is the INTANGIBLE assets particularly intellectual property. Personally, I should think there may be away to assign more value to patents and such but still, they have to be amortized. The proponents of Pooling basically want to NEVER recognize as expense the EXCESS purchase price over tangible net book value by never amortizing it. They would likely argue that there is no dimunation of value in intellectual property EVER unless the company begins to become obsolete and then the lower revenues and earnings would reflect that fact. Its not a real strong arguement. While, I personally, like the Pooling Concept, I think the FASB is on pretty strong ground in their arguements. Sadly, as investors we will be hurt more than helped by all this, for while we will MAYBE get a clearer picture, we wont like what we see and it also will DRASTICALLY IMHO reduce prices companies are willing to pay for each other. JDN

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