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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (9484)	7/12/2002 12:59:30 PM
From: BWAC	Read Replies (1) \| Respond to of 16631

<other accounting firms besides A.A. are found to have manipulated the "books" of many corporations. > Got to be careful and thoughtful there. Cause the whole accounting system involves the use of judgments and estimates in an attempt to conservatively match expenses to the revenues they produce. But whenever a judgment or estimate is made, it is always subject to being found incorrect in the future. After the fact of course. Backseat driving if you will. Investors are going to have to look beyond the media hypelines and think. Was the original judgment or estimate rational? Was it conservative in nature? Two examples: Enron = Definitely not. Outright fraud. WCOM = Probably not. But I have yet to see the memo explaining the rationale behind capitalizing the expense. For some reason it exists, is in SEC hands I think, but is not public for the investors.