Basically, from what I can tell, AOL capitalizes all product development expenses, then depreciates these (I'm guessing over a one or two year period) expenses over time. So, the line item on the income statement for product development expenses is actually a "net" number (which AOL should indicate there, if you ask me). To find the actual expense from the quarter, you need to look at the balance sheet. The Dec. balance sheet shows an asset balance of $83,635 whereas the Sept. balance sheet shows $77,553. Thus, AOL spent $6,082 more than they actually show on the income statement. So add what they reported and the delta from the balance sheet, and you get the actual total spent, $29,714.
You can also look at the cash flow statement and determine what the "depreciation" of these costs. The Dec. cash flow statement shows a -$13,791 for product development. That means they spent that much more than they depreciated. So, $29,174 - depreciation = $13,791. Or depreciation = $15,383.
KJ |
