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Technology Stocks : Hewlett-Packard (HPQ)
HPQ 22.29-2.7%3:59 PM EST
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To: MeDroogies who wrote (1854)10/4/2002 9:49:44 AM
From: Oeconomicus  Read Replies (1) of 4345
 
Advertising, once spent, is gone.

Exactly why it should NEVER be capitalized. To do so, in an attempt to reflect the intangible long-term "value" created by it ("brand building"), one is essentially creating "goodwill" on the books to hide expenses. It's complete BS.

That said, can you link that article? Sure would like to see what rationalizations they came up with.

PS: Capping marketing costs was what got AOL in hot water five or so years ago. Capping other operating expenses is what took down WCOM.
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