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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: The Duke who wrote (7964)	2/17/1998 12:29:00 PM
From: PAL	Read Replies (1) \| Respond to of 13594

That is exactly what the problem with AOL's accounting. They might treat that 16MM due now as revenues for Q3 which makes Q3 looks good which in turn will boost AOL stock. Then in Q4 AOL will say: "due to conservative accounting method we are adopting", that 16MM will be part of 30MM which should be spread throughout the life of the contract. That will make Q4 look better (instead of the remaining 14MM spread over 11 quarters, now you have 30MM); Q3 would be restated which would be much worse than previously announced Now sequentially Q4 looks much better than Q3, hence anither boost to the company stock. That kind of magical accounting has happened in 1997. Anybody would like to bet that it won't happen again?