Compaq Message Board - Msg: 9050676

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Technology Stocks : Compaq

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To: QuentR who wrote (59108)	4/21/1999 10:16:00 AM
From: rupert1	Read Replies (1) of 97611

Do we have an accountant in the house - professional or amateur? How will the shares COMPAQ retains in Alta Vista be accounted for after the spin-off? Apparently, it is possible to elect to run the market value of holdings through the profit and loss so that it is reflected in the EPS. I would imagine that COMPAQ won't do that because of the wild swings that might produce in the EPS as the AV share price rises and falls. Presumably, then, the value will be either the acquisition cost, or the IPO price before market on the 1st day or, eventually, the proceeds from their sale. If it is the acquisition cost will this be calculated by breaking out the relevant portion of the purchase price for Digital, added to the cash given by COMPAQ to the private AV together with the cost of zip2 and shopping.com. Whatever valuation is shown on the books, will the AV shares be categorised as "Cash or Liquid Assets"

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