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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: jack bittner who wrote (7183)	10/3/2000 10:10:18 AM
From: Ian@SI	Respond to of 14638

Perhaps, the key answer to your question is that you don't understand one of the key differences between Canadian GAAP under which NT has been legally obligated to report its numbers, and US GAAP. NT is not permitted to use Pooling of Interests accounting for its acquisitions. While your diatribe may be perfectly accurate for describing a company such as CSCO which does use pooling of interests, it's completely inaccurate for NT which is required to put Goodwill on its books, then write it off against earnings. As a result, if you compare the reported numbers for a US and a Cdn company, both of which have done acquisitions, your line of questioning will lead you to a very wrong conclusion. And it appears it has. ;^)