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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (49452)	2/27/2001 6:30:22 PM
From: Wyätt Gwyön	Respond to of 77400

what a lot of people don't realize is that when the FASB takes away pooling for mergers, the overall value of deals will decrease significantly as mergers and acquisitions will have to either be done more in cash, done in stock at the immediate expense of Return on Equity, or not done at all. I don't think that is the case. My understanding is the FASB is saying goodwill on purchase accounting does not need to be amortized and can be written off all at once. Thus no drawn-out charges against GAAP earnings. At the same time, the switch to purchase accounting will give cos. the flexibility to do share buybacks if they so desire. The above is my nonexpert understanding only, and may be incorrect.