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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Paul Ma who wrote (99948)	3/25/2000 10:34:00 PM
From: Charles R	Read Replies (1) \| Respond to of 1572529

Paul, Welcome aboard! <What is depreciation?> An accounting thing that hits AMD's expenses line once the fab goes into production. < Do you mean Dresden is going to lose net value or something? > Yes. Almost every capital expenditure item one buys loses value from the day it is bought. There are rules on when and how companies account for that. For fabs it happens to be the day that the company decides that the fab is in production. Chuck

To: Paul Ma who wrote (99948)	3/26/2000 2:31:00 PM
From: tejek	Respond to of 1572529

paul ma, Welcome to the AMD thread.....while you are now the youngest poster on the thread, you will find that there are several on the thread who act younger. To answer your question (and by the way I am not an accountant), depreciation is an accounting tool used to establish value for certain kinds of property and something you will learn more about in Accounting 101 in college. According to accounting any man made project like Dresden loses value the day it is completed. That's not to say you could not sell it for the same price or for more than what it cost to build but that kind of a price is considered market value and not accounting value. Accounting establishes value each year for a building or production equipment in order to determine what taxes the company must pay the government at the end of the year. The value that accounting establishes is called basis and is an important component in accounting evaluations. Thats enough.....I don't want to fry your brain. And now I have a question for you...how to do you post to Duncan Baird and how did you figure it out? I have been trying to figure that one out since I started posting. So I hope you and only you will provide me the answer. Thanks. ted