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Politics : RAMTRONIAN's Cache Inn -- Ignore unavailable to you. Want to Upgrade?


To: Sr K who wrote (13810)2/15/2008 12:00:00 PM
From: NightOwl  Respond to of 14464
 
Even though this is a non-cash accounting requirement, the market has to adjust to earnings reports that will show taxes and after-tax earnings.

The key word is "adjust" SR K. The accounting is not a requirement. It is "non-cash." And the reports will now also show each such "non-cash" treatment and when the tax liabilities do begin they'll be offset by the same "non-cash" payments until the balance sheet is clear.

Just like the inverse of the options expense treatment, such "accounting" without an adjustment creates a false impression of current operations.

The income, cash flow and balance sheets are not derivative instruments. The real 2008 eps will not be $0.20/sh without some drastic problem in sales.

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