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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (38812)	2/1/2001 3:48:45 PM
From: A.L. Reagan	Respond to of 54805

In commenting on today’s decision, Edmund L. Jenkins, Chairman of the FASB Many moons ago I worked on Ed's accounting theory think tank staff at Arthur Andersen in Chicago. Sharp guy. There is a lot to be said for a unified standard, but purchase accounting doesn't necesarily tell the real story when the consideration is paid in newly-issued stock. However, WS is pretty much ignoring goodwill amortization in valuing companies these days. Purchase accounting also allows for more fun 'n games in reserving for future bad operating stuff. [You debit goodwill (asset) and cr. reserve for future bad stuff (liability) and then when the bad stuff happens it doesn't show on the P&L, and nobody pays much attention to increased amortization of goodwill.] OTOH, pooling has its share of evils as well.