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 : GTIS - Will it be a Phoenix or not ?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Scott Miller who wrote (1736)3/12/1998 1:45:00 PM
From: RJC2006   of 2319
 
<<<Sorry, I do not know enough about accounting to comment intelligently. However, my guess is that it simply shifts the expensing to an earlier date, meaning more profits when the game is released. The expenses are gonna get reported sooner or later--the money is advanced and/or spent either way. But as I said, I'm not an accountant and I may be missing something.>>>

The question really should have been "will GT have lower reported earnings in the next quarter [or near term] now that they are expensing prepaid royalties earlier. The answer COULD be yes but good luck in trying to figure out what impact it will have for a number of reasons. Unless one has an open eye to the companies books it's impossible to identify. The reason being that an analyst needs to know what has already been expensed and what will be expensed in the near future -vs- what is going to be released and what is released.

If you increase sales (AND earnings) then for the layman they probably won't be able to "see" the impact of the accounting change unless they have an in depth analysis of what earnings should be. If you don't increase sales and earnings then I would predict that they will almost invariably see an impact. Less money or equal money coming in and obviously more money going out [temporarily]. What it comes down to is incurred expenses are being moved up which can create a temporary deficit until sales and earnings can absorb the change.
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