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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?


To: benhorseman who wrote (79285)7/28/2008 1:54:35 PM
From: Q8tfreebe  Respond to of 197214
 
Rather that be amortized over the life of the contract, would it not make more sense to amortize the upfront payment on a per device basis, according to the number of units Nokia sells each quarter. In other words, view the upfront payment as a credit against future royalties that Nokia would "work off" each quarter. Once fully amortized (i.e. worked off), Nokia would again start paying royalties on a quarterly basis in arrears.