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Technology Stocks : The New QLogic (ANCR)
QLGC 16.070.0%Aug 24 5:00 PM EST

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To: Patrick Sharkey who wrote (18951)10/29/1998 5:21:00 PM
From: richroni  Read Replies (1) of 29386
 
Patrick,
Perhaps it is possible that the receipt of cash may only generate a future performance or product related liability. The actual revenue gets reported when services are performed or goods delivered. (think of it as depreciation in reverse where the cost is spread out over an object's useful life) It would seem to me that a proper revenue recognition would consider the costs involved with the delivery of the service/product. That way an accurate income/expense picture would be painted.
This of course is not based on any accounting expertise that I have.

MOO
Richard
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