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To: UnBelievable who wrote (50016)	5/9/2000 7:32:00 PM
From: pater tenebrarum	Respond to of 99985

the salient points - and the bone of contention - are imo: <<It took one-time charges of $488 million, or about six cents a share on an after-tax basis, as write-offs of purchased in-process research and development. Cisco also completed the acquisitions of Altiga Networks, Compatible Systems and Growth Networks Inc., which were accounted for as poolings of interests.>> it is precisely this type of accounting shenanigan that lies at the heart of the controversy (aside from the valuation issue per se). i have written a letter to FASB (i posted it on the ask MB thread back then) where i argued that shareholders would likely be best served if pooling of interests accounting were done away with. it stands to reason that purchase accounting would not stand in the way of acquisitions that make economic sense. however, the true cost of these acquisitions would be made known to shareholders. as things stand one has to question whether certain acquisitions are not merely functions of 'earnings management'. it is interesting to note in this regard that CSCO has now the remarkable distinction of beating estimates by exactly one penny for eight quarters in a row. truly amazing. regards, hb