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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Salasidis who wrote (97217)	1/23/2000 12:59:00 AM
From: Process Boy	Read Replies (2) \| Respond to of 186894

Robert - How are you doing on presenting actual evidence of some impropriety in the accounting? PB

To: Robert Salasidis who wrote (97217)	1/24/2000 6:44:00 AM
From: nihil	Respond to of 186894

Not actually. Investments and acquisition are accounted for as capital expenditures. Since these are acquisitions the value is exactly the same as the expenditures that purchased them. Some of the purchased cumulative (presumably useless) R&D is written off as an expense on the income statement. The goodwill and cumulative useful R&D is amortized over 30 years and the share so written off is included in the income statement as a cost. Acquisition accounting is usually accused of making future income higher and reducing current income. IRS does not permit exaggerated writeoffs (but it will be years before it accepts the reporting). Intel rarely acquires with stock (as Cisco does), but recognizes that using cash for acquisition reduces the need to repurchase shares to avoid dilution as a result of options exercise.