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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (48415)	4/19/2002 2:51:30 PM
From: JDN	Read Replies (2) \| Respond to of 64865

Dear Charles: Well, it is initially driven by the sales price of the company, that is usually a negotiated item I guess whether its arbitrary or not depends upon whether you got a good deal or not. (gg) JDN

To: Charles Tutt who wrote (48415)	4/19/2002 2:54:33 PM
From: CYBERKEN	Respond to of 64865

The goodwill problem is fascinating and has become somewhat of a headache over the last 20 years. Theoretically, the assets acquired are consumed over time-like all capital-so goodwill must be written off. But amortization and valuation can be speculative, and the write-off can significantly distort the net income as a result. Two interesting considerations: What if the goodwill relates to a purchased brand name, that retains it's value indefinitely? & What if the goodwill represents a bubble fluff of assets that have far less value-but you bought them with your own stock, that was inflated at the time? Should you have to disclose adjusted valuations for both the goodwill and the paper that was traded for it? I think the accounting profession is far behind in developing the best possible standards for either carrying or amortizing goodwill. Their best bet at this time is to require detailed disclosure in footnotes, with possibly a "state of goodwill" schedule in the reporting. As of today, investors have inadequate information on goodwill for any company that has significant amounts of it.