To: mtnlady who wrote (33494 ) 10/21/2000 8:30:08 PM From: Thomas Mercer-Hursh Read Replies (1) | Respond to Seems to me that we have here yet another conspicous example of how unlikely it is that one should trust a CPA to tell one anything about accounting. In the pooling of interests discussion he seems to think that just because Cisco paid for a merger with something that cost $N, that this figure should be reflected on Cisco's financial statements and, doing anything else is some kind of accounting fiddle. But, we are talking about a transaction paid for with stock, something that may have a nominal par value on the company's statements prior to the merger. The only transaction that Cisco is making is a conversion of a certain number of shares of unissued shares to issued shares. Were it actually reasonable that Cisco should represent the market value of these shares in their financial statements, then it would have to follow that the market value of those shares should have been in the statements before the transaction as well .... I am sure that Cisco would love to be able to represent the market cap of their stock in their balance sheet!
