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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (147549)11/17/1999 9:31:00 AM
From: Mike Van Winkle  Read Replies (1) | Respond to of 176387
 
GVTucker re: this wouldn't be an income statement issue.

But the money Dell spends on these improvements is largely expensed, which lowers their current earnings. A process improvement developed in Ireland is transferred to all locations to improve Dell's operation by incorporating it into the on going training programs. The new way of doing business is beyond most people's experience, especially competitors (and accountants?).
Cheers
Mike



To: GVTucker who wrote (147549)11/17/1999 2:46:00 PM
From: Chuzzlewit  Respond to of 176387
 
GV, I believe that SOP 98-1 requires that the costs of development or upgrade of software for internal use should be capitalized rather than expensed. I don't know whether Dell has adopted this standard, or its materiality. My guess is that if it has not it would have a negligible positive impact on the income statement -- but that's just a guess.

TTFN,
CTC


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