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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: John Stopforth who wrote (79629)	5/7/2002 2:18:27 PM
From: Petz	Respond to of 275872

John S, re:<How did Intel get away with not taking a write off of goodwill? I noticed that goodwill didn't change in value on their balance sheet. I thought the new accounting rules required a one time charge. Could it be they don't have to take a write off until the end of the year?> I believe that if they had made any acquisitions in the quarter, they would have to write off the goodwill associated with them immediately. But I combed the Q1 statement and didn't find them bragging about any acquisitions. As far as writing off existing goodwill, I think the rules are pretty loosey goosey. If Intel determines that an asset is not worth $X by only $Y, they can write off X-Y. From a financial and investor point of view, it doesn't make sense to write off anything when earnings are already in the toilet and when the tax rate is low. No, when Intel is making $0.50 a share, they'll write off a few billion as a "one time charge," and the investor community will applaud the tax savings. Petz