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Non-Tech : Tyco International Limited (TYC) -- Ignore unavailable to you. Want to Upgrade?

To: Tatnic who wrote (3470)	7/2/2002 9:00:33 PM
From: RGM	Read Replies (1) \| Respond to of 3770

Mentioned on their conference call was they have retained "forensic" accountants. Do you know what service these accountants are performing for TYC? Might it be a fraud audit?

To: Tatnic who wrote (3470)	7/3/2002 8:20:28 AM
From: Howard Salwen	Read Replies (2) \| Respond to of 3770

Well we have been hearing about smoke for 6 or 8 months. Where is the fire? Believe me, the SEC auditors are not incompetent and they were looking for trouble (was it twice) and found nothing. Can the books be totally clean? Would you sign a statement saying that your tax returns are perfectly correct? Life is just too complicated. Let me give you an example. Let's say you are developing an electronic product that involves both hardware and software development. According to GAAP, the hardware developer's time is expensed. But, under many ordinary circumstances, the software developer's time is capitalized. This is not logical, right? There are many other accounting issues that are simply judgement calls. For example, how big should you reserves be for bad debt, for inventory obsolescence and so forth (hey, are we on the Worldcom subjectmark?). The bottom line is that Cash Flow has less of this variability. Beginning cash + sources - uses = ending cash. And the cash has to tie out with what is in the bank. I think TYC cash flow is solid and improving...