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Microcap & Penny Stocks : Zia Sun(zsun) -- Ignore unavailable to you. Want to Upgrade?

To: R.E.B. who wrote (3245)	7/7/1999 10:36:00 AM
From: who cares?	Respond to of 10354

R.E.B. Repost from fellow member of the evil 8, Alpine Sleuth on Raging Bull. Keep in mind that according to the touts mad theories he is a disgruntled employee, or ex-employee of one of the firms involved in this whole rigamaroll, and of course they're never wrong. R.E.B. I with read with interest your reply to C M Burns. "Don't sweat the small stuff. You will see a few holes until ZSUN gets their filings in order. Also, you may see some adjustments as we go forward with fully reporting especially with any acquisitions made in the past and accounted for under the pooling of interest method of accounting. You WILL see a restatement for SEC purposes on the Equity method of accounting for the acquisitons which will result in increased book value, but higher amortization of goodwill." I am aware that the Pooling of Interests Method will be eliminated and that in the future (sometime in 2000 or 2001) business combinations will be accounted for only under the Purchase Method. (You do mean Purchase rather than Equity? To refresh your memory, the Equity method relates to a method of accounting for long-term equity investments when the investor has significant influence over the investee, generally + 20%, and contrasts to the Cost Method, which is generally applicable when the investor has less than 20% of the voting stock). You correctly point out that under the Purchase Method the goodwill, which is the excess of the purchase price over the net asset value, increases the book value of the assets of the buyer, but also negatively impacts income as this is amortized over time by charges against earnings. When you state that "You WILL see a restatement…" do you mean that companies that had previously acquired other companies and used the Pooling of Interests Method, will be compelled to restate their financial statements to account for these previous acquisitions under the Purchase Method? AlpineSleuth