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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: jackrabbit who wrote (141306)	8/10/2001 9:54:05 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

JR - Re: "Wrong yet again." I'll bet you a dollar this doesn't shut up that Blow Hard Dan about this subject. Paul

To: jackrabbit who wrote (141306)	8/10/2001 10:20:13 PM
From: Windsock	Respond to of 186894

Jackrabbi - Re:"Statement 142 requires that goodwill no longer be amortized to earnings, but instead be reviewed for impairment. This change provides investors with greater transparency regarding the economic value of goodwill and its impact on earnings." Well it seems that the CFO of Intel is smart enough to prepare recently a pro forma earnings statement that provides greater transparency for earnings reports, even though it was not required. Perhaps, Andy Bryant was even aware of the proposed Statement 142 and its purpose. The Intel shareholders and others benefit even before the FASB requires the transparency. Good job Andy B.

To: jackrabbit who wrote (141306)	8/11/2001 3:44:27 PM
From: Dan3	Respond to of 186894

Re: Statement 142 requires that goodwill no longer be amortized to earnings, but instead be reviewed for impairment. This is where those "from nowhere" $19 Billion NT style writedowns come from. Accounting games. I didn't post about GAAP, I posted about what had been spent, vs. what had been listed as costs, on Intel's recent financial statements. Accounting is not simple, nor is it boring. I again point to the NT $19 Billion loss in a single quarter to demonstrate just how exciting it can be. How did this happen? NT had a combination of overpriced physical assets and goodwill on its books. Goodwill is an intangible asset that reflects the value of a business as a going concern. It's most easily characterized as a brand name that lets a company sell something for more than it would be able to sell the identical item for without the brand name. Over the past few years, Intel bought a number of companies, and (as often happens) paid more for those companies than the value of those companys' tangible assets like factories and inventory appraised for. Sometimes, if a company buys something for less than it is valued by its accountants (think of the appraisal value of a house you might buy) they must list the "overpayment" as a cost (a writedown to book). But if a company wants to, it can put down on its books an intangible value called "goodwill" that is the amount over and above the value of the actual physical assets that the buyer thinks the purchase was worth to his company. Right now, Intel books list the companies it bought over the past few years as being worth $6+ Billion dollars more than the value of their physical assets, so when it bought those companies and their assets of, say, $4 Billion, it entered them into its books as though they had physical assets of $10 Billion. Maybe they were right - there certainly is such a thing as intangible value. NT did quite a bit of the same thing, during the same period, and found that when reviewed what they had bought, it turned out to be worth $19 Billion less than they used to think. So NT took a $19 Billion loss in a single quarter.