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Technology Stocks : DIGL... Digital Lightwave.... Making Waves.... -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (327)	1/27/1998 3:04:00 PM
From: squirrel	Respond to of 934

Contingent Assets and Liabilities You responded to this comment earlier: >>It's been done, and apparently isn't illegal. I don't know if it's strictly GAAP, but it's far from unprecedented.<< According to their policy they must disclose contingent assets and liabilities. The operative word is contingent. USE OF ESTIMATES - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (DIGL Form 10k) If you have the fortitude, this link gives you the ground rules for reporting revenue. Accountants by definition are fiscally conservative. Labeling a particular practice as aggressive accounting is a contradiction of terms. This should be recommended reading for anyone caught up in the DIGL debacle. 10b5.com