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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 177.78-2.2%Jan 9 9:30 AM EST
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To: q1000 who wrote (81125)10/16/2008 1:04:08 PM
From: David E. Taylor  Read Replies (2) of 197157
 
Won't QCOM accrue the lump sum payment and show it as a receivable on the 9/30 balance sheet?

It may show as a receivable, but certainly won't show up on the balance sheet until it's in the bank. And no EPS impact until they have the cash to start amortizing off to quarterly revenues.

It also should accrue the income allocable to the prior periods although I do not know whether it would all be accrued in the 9/30 period or whether they would restate prior periods.

Big effort for them to restate 6 Q's worth of financials, I doubt they'll do that unless accounting standards require it. It's a lump sum they will receive in Q1 FY2009, and I'm fairly sure they'll just amortize it all going forward. If it had been in the bag before 9/30/08, they could have added something into Q4 for past royalties due, but that won't happen now.

I also wonder whether they might have an exchange loss to report for 9/30 if they did not hedge all of the Euros receivable.

I doubt they can hedge foreign currency they don't yet have, but I may be wrong. Not much detail in the last 10Q about the extent of their currency hedging activities.

David
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