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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (71472)	12/15/1999 8:58:00 AM
From: Cynic 2005	Read Replies (2) \| Respond to of 132070

Chuzz, remember our discussion on CSCO some time ago? I said they may have to restate the earnings. (I believe you said even if they have to, it should matter as the cashflow remains the same.) cnnfn.com <<Accounting practices may cause restatement Cisco also warned about the possibility that the company would have to restate its prior earnings reports, in the wake of recent scrutiny of the way companies account for acquisitions. Several companies -- most notably Tyco International (TYC), which has been on an acquisition binge in recent years - have been criticized recently for using a "pooling of interest” method of accounting for their business combinations, which watchdogs say helps them pad their earnings. That has prompted the SEC to review the pooling of interests accounting method. "We believe we are in compliance with all of the rules and related guidance as they currently exist," Cisco said in the filing. "However, there can be no assurance that the Commission will not seek to reduce the amount of purchased in-process research and development previously expensed by us. This would result in the restatement of our previously filed financial statements and could have a material negative impact on financial results for the periods subsequent to acquisitions.” The Fair Accounting Standards Board also is moving ahead with plans to eliminate the pooling of interests method of acquisition accounting. "If this occurs, it could alter our acquisition strategy and potentially impair our ability to acquire companies,” Cisco said in the filing. Cisco shares slipped 3-1/4 to 97-15/16 in Nasdaq trade Tuesday, but picked up 1/2 in after-hours activity>>