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To: Biomaven who wrote (6673)	6/11/1999 9:28:00 PM
From: Chuzzlewit	Respond to of 9068

Peter, I am a financial analyst, not an accountant. Analysts and accountants frequently view data differently, and for different purposes. The accounting treatment you outlined is generated with the intent of conservatively presenting earnings per share. An analyst, however, views the data from a more empirical perspective. The problem is that conversion is triggered by the price of the stock, not earnings per share. Thus, the use of the accounting treatment you discussed could lead to a major miscalculation for the outlook for dilution if, for example, there were a major increase in long-term interest rates such that the stock market fell rather dramatically. I am not disputing the proper way to account for convertible debentures under FAS 128. I am simply pointing out that it makes no sense to embrace the rule when the probability of conversion is determined solely by the stock price. TTFN, CTC