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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: JDN who wrote (37933)	6/25/2000 4:56:00 PM
From: M. Charles Swope	Read Replies (1) of 77400

JDN, How can Gary and I both be wrong? The fact is that the purchase method does assign full value to the assets being acquired, intellectual property among them. That's why acquiring companies DON'T like it. They would prefer not to have that level of assets on their books. Remember, the more assets for a given level of income, the lower the ROI. As for why technical people prefer pooling, it's because the wave of M&A activity encouraged by pooling accounting is creating jobs in technical areas and raising the pay of those workers. Another fact to keep in mind is that no company was ever required to use the pooling method. The purchase method was always available. Now, that method will be required. Following is a link to a statement giving the FASB's take on this: infoseek.go.com Charlie

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