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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?

To: Andrew C.R. Biddle who wrote (4551)	4/9/1998 1:32:00 PM
From: Kory	Read Replies (1) \| Respond to of 14266

ATVI would be violating GAAP if they take sales in one quarter and the rebate costs in the next. GAAP requires they match the costs with the revenues - which means they must make an estimate of expected rebates to be paid and charge it to expense in the same quarter as the sale. That being said, not all companies follow good GAAP and unfortunately CPA's/auditors these days don't seem to require the same level of conservatism as in the past (bashing on my own profession). The only way to avoid taking the charge would be to claim that you could not estimate the likely rebates and disclose this in the footnotes in the quarterly report. Have no idea what the ATVI situation is as I have never looked at the company. Just wanted to spout my accounting theory. A THQI bullish accountant.