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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (417)	11/26/2002 12:57:02 AM
From: i-node	Read Replies (1) \| Respond to of 3386

I have to disagree. The "metrics" I mention are accounting terminology that is a STANDARD basis for subscriber models. Terms such as CPGA, Churn, etc. I'm not familiar with any official pronouncement of FASB or its predecessor that sets out any such standards. If you point me to such a pronouncement, I'll stand corrected. What there is not a clear industry standard term for is "Subscriber Acquisition Costs". In this case. The term ""Subscriber Acquisition Costs"" as reffered to by XM means what they want it to mean. Well, you've hit on the problem. There are no specific definitions for any of these terms. They're ALL whatever the reporting entity wants them to be. "Subscriber Acquisition Cost" is not an accounting term at all and has no specific meaning. XM is, and should be, permitted to determine what comprises such costs -- and if they want to include 25% of marketing expense because they think the other 75% is more appropriately classified as the cost of building a brand, they are totally correct in doing so. All of this terminology ("churn", CPGA, etc.) is, to me at least, meaningless -- much more sensible is to simply state how the item is computed. If I were making any financial presentation, I would not use these terms without a precise explanation in the Notes to Financial Statements as to how they were computed, because there is no official accounting meaning.