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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 159.42-1.2%3:59 PM EST

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To: slacker711 who wrote (146643)11/28/2006 6:48:03 PM
From: Dash of Reality  Read Replies (2) of 152472
 
I wonder if Q will accrue a possible royalty to Nokia once the agreement ends.

Excellent question... Given that QC has stated that the impact to the bottom line is only $0.04 to $0.06 per share, I would have to assume that they will accrue revenue. From an accounting stand point I believe that they would be required to accrue for the amount of revenue (percent of royalty) that Nokia has agreed to in their negotiations. This would be the minimum amount of revenue (worst case scenario) that would be received from Nokia.

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