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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: SKIP PAUL who wrote (6445)	12/14/1997 5:31:00 PM
From: Dan Ross	Read Replies (2) \| Respond to of 152472

I differ with the expensing of R&D tied to royalties issue..... R&D must be expensed immediately....according to GAAP....Sorry but no capitalizing them and tying them to a future royalty stream that no auditor would know the $$$ amount of.....It wouldn't happen.....try telling a bean counter that you are capitalizing these expenses so that you can charge them against a royalty stream later on...AIN'T GONNA HAPPEN.... I believe that 100% -lawyers fees would be the correct amount. According to what I have heard QCOM has a dept with a few lawyers working on nothing more than deals and their structuring....If you match their Rev-expenses (matching principle) on a given Q you could get a number. Of course they didn't earn the Rev. so you can almost throw that out the door too..... Bottom line....I don't know how royalties make their way to the bottom line BUT.....I am sure it isn't - R&D...that would be crazy..HUGE timing mismatch... Dan Ross