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Technology Stocks : Jimbo's Playhouse/CPQ -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (8308)	12/8/2000 7:20:22 AM
From: Kenya AA	Read Replies (1) \| Respond to of 12663

I'm no CPQ. Uh, I think maybe you've been spending waaaay too much time on the Compaq thread. <ggg> In answer to your question, whether an acquisition is made with cash or stock is not a factor here. I don't know if or how much elimination of pooling would affect CSCO or JDSU as my guess would be that they probably use the purchase accounting method for the majority of their acquisitions. Pooling really becomes an advantage for "mergers of equals" and large acquisitions, though, where there's a lot of goodwill that under purchase accounting would have to be written down. What's important here, is that not only has FASB backed off on eliminating pooling, it has kept the amortization period for purchase accounting at 40 years instead of cutting it in half. What it means as far as the market goes, is that the stock of companies making acquisitions should take less of a hit, or rather, less of a hit than if FASB had gone ahead with the planned changes. K