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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Ally who wrote (13172)	8/5/2001 4:16:14 AM
From: RobertSheldon	Respond to of 15615

But isn't IRU useful life 20 years and not 40? But rules allow for Goodwill to be amortized "up to" 40 years. If they book a large portion of the expenditure as goodwill (meaning getting their auditors to allow for it) it will be treated as goodwill. GAAP is a good starting point (as I have no better set of ideas!) but it often falls short of the barn. Again, this is why we use Owners Earnings. You may want to forecast GX's numbers out 5 years using what I mentioned earlier this evening. The shorts have it ALL wrong.