Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Amy J who wrote (167201)	6/28/2002 7:34:21 AM
From: GVTucker	Respond to of 186894

Amy, it appears as though the market is doing just fine in solving the problem. I bet the audits being conducted by the non-Arthur Andersen firms are pretty thorough these days. The partners of those firms don't want to see their nest eggs disappear. It can be rather painful in the short run, a bunch of innocent people get sacrificed, and sometimes it seems like it takes way too long, but the market works. "The truth is we are all caught in a great economic system which is heartless." --Woodrow Wilson

To: Amy J who wrote (167201)	6/28/2002 8:25:03 AM
From: John F. Dowd	Read Replies (2) \| Respond to of 186894

Put people on the B of D like Duke. This XRX thing further highlights the problem of revenue recognition. Evidently this is a case of booking a portfolio of lease revs. too early or moving them forward in the life cycle of the lease. This should have been picked up unless the leases were comingled across various time spans. There are all sorts of ways to obfuscate lease terms or mistakenly lump them together and recognize them too early especially if the customer prepays the lease for a discount. It is ironic that MSFT was taken to task for just the opposite of this and being very conservative in their recognition of revenues. JFD