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Technology Stocks : Extreme Networks, Inc. (EXTR) -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (614)	7/20/2001 9:20:05 AM
From: A.L. Reagan	Read Replies (2) \| Respond to of 770

Dave, I don't know what you mean by "the tax books", other than this is set of financials that appears on a tax return, and not in press releases, 10-Q's, annual reports, etc. Yes, on a tax return there is Schedule M where book and taxable income are reconciled, but since as investors we don't have access to tax returns and what we look at are either purported-GAAP statements (or a company's pro-forma bastardization of GAAP), the deferred tax accounts we are talking about are those computed in accordance with GAAP. So on the GAAP books, if you have a GAAP profit but a tax loss due to future-reversing timing differences, that's a liability because in the future you will have to pay those taxes. Hope this helps. It's been many moons since my eight year stint at Andersen as an audit CPA, and the whole topic of book versus tax accounting is way more complex than we can discuss on some stock thread. It is one of the more difficult areas for non-CPAs to decipher in reading a balance sheet; the another probably being the currency area.