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To: JDN who wrote (37933)	6/25/2000 4:56:00 PM
From: M. Charles Swope	Read Replies (1) \| Respond to of 77400

JDN, How can Gary and I both be wrong? The fact is that the purchase method does assign full value to the assets being acquired, intellectual property among them. That's why acquiring companies DON'T like it. They would prefer not to have that level of assets on their books. Remember, the more assets for a given level of income, the lower the ROI. As for why technical people prefer pooling, it's because the wave of M&A activity encouraged by pooling accounting is creating jobs in technical areas and raising the pay of those workers. Another fact to keep in mind is that no company was ever required to use the pooling method. The purchase method was always available. Now, that method will be required. Following is a link to a statement giving the FASB's take on this: infoseek.go.com Charlie

To: JDN who wrote (37933)	6/25/2000 11:00:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

Perhaps our discussion is the same reason the accountants are struggling as well. The point I'm trying to make is that the value of the intellectual property is a future expected value... it's a future asset - not a current asset. It's an expected value which may or may not occur. So, your argument is to amortize an expectation since this asset is not a patent - it's an expectation of future returns and future revenues. A patent is tangible - expectations are not. OG