SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Wind River going up, up, up!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Snowshoe who wrote (2855)3/5/1998 3:29:00 PM
From: Logain Ablar  Read Replies (1) of 10309
 
Greg:

A quick (but not complete) answer.
GAAP accounting. When you purchase a company and pay more than its book value you have to set up good will and write it off over a period of time (charging earnings over that period, I think its 40 years but may be less). However there are ways to write off a portion of the "goodwill" by identifying some as in process development, or something along those lines (a GAAP or SEC accounting expert can elaborate more).

From a tax stand point to the extent you have a purchase of assets you can allocate and write off over 15 years.

Tim
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News