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Technology Stocks : PCW - Pacific Century CyberWorks Limited -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (1519)	7/3/2001 10:13:41 AM
From: ms.smartest.person	Respond to of 2248

PCCW (0008) reports $145.8B +ve asset value in US 2001-07-03 10:40 (Infocast News) Pacific Century CyberWorks (0008) (PCCW) announced that in order to comply with the requirements of the Securities and Exchange Commission of US, the company's results of last year, in the form of American Depositary Receipts (ADRs), will show a net loss but assets with positive values while a net loss and assets with negative values are found in the results in Hong Kong's accounts. According to the results for the year ended December, 2000 and under HK GAAP, there were assets with negative values of $14.5 billion due to the goodwill amortization and as a net loss of $6.9 billion was recorded. However, under US GAAP, the goodwill should be amortized over the estimated period of benefits and so that assets with positive values of $145.8 billion and a net profit of $14.57 billion were observed in the US accounts. Yet, sustained profit can hardly be obtained under US GAAP since goodwill has to be written off continuously in the coming few years but it is easier to have a turnaround under HK GAAP since the considerable amount of goodwill has been written off completely.