Booking Holdings (formerly Priceline) Message Board

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Technology Stocks : Booking Holdings (formerly Priceline)

BKNG 5,050

-0.5%

Nov 14 3:59 PM EST

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To: H James Morris who wrote (2386)	7/25/2000 9:37:06 PM
From: allen menglin chen	Read Replies (3) of 2743

Priceline.com: Name Your Own Earnings fool.com ... Revenue By now, almost everyone knows that priceline.com records all of the revenue from its ticket sales in its top line. When priceline.com sells a $200 ticket, they book all $200 as revenue and deduct the cost of the ticket in cost of goods sold. This contrasts with a normal travel agent, which only records the commission it receives (around $16 on a $200 ticket). priceline.com's practice meets Generally Accepted Accounting Principles (GAAP) since the company temporarily holds the plane seat in its inventory. Skeptical people like me, however, point out that the company doesn't really take inventory risk, since customers have prepaid for the tickets on their credit cards. ... "Pro Forma" Operating Statement While GAAP has been promulgated by the accounting profession and contains restrictions, pro forma financial statements can be constructed any way a company desires. No regulations or restrictions exist for this kind of statement. They have traditionally been used by companies undergoing serious transformations (mergers or restructurings) that distort GAAP-compliant statements. In addition to reporting GAAP results, the company also shows what the income statement would look like if the unusual events were excluded. ... ======================================================= Next, name your own PCLN stock price :). I have entered $5.01, and hopefully it will get filled by Dec 31.

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