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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: Alfonse Rossi who wrote (5196)	10/16/1998 1:54:00 PM
From: James Logajan	Read Replies (1) \| Respond to of 8358

Cabletron was merely following the lead a few other companies had set. The SEC has recently changed its policy on acquisition charges (either that or it is now enforcing a previously unenforced policy). Quite a number of companies have been contacted recently by the SEC and told that they can't categorize acquisition expenses as research and development. R&D can be expensed in the quarter it occurred; but buying capital equipment must be depreciated or amortized over the useful life of the equipment. I think amortizing the expense is considered the more fiscally conservative and accurate way to handle an acquisition, and is the method some companies and industries do use.

To: Alfonse Rossi who wrote (5196)	10/16/1998 3:21:00 PM
From: Jeff Morgan	Respond to of 8358

Accountants, like lawyers, have years of training in obfuscatory language and tactics. Yes, their incantations are codified, but no, they probably won't give the rest of us a clear picture.

To: Alfonse Rossi who wrote (5196)	10/17/1998 1:51:00 AM
From: Yujin Maison	Read Replies (1) \| Respond to of 8358

Cabletron is bad company. They announced to reduce 2-4 million expense, but I told CS that CS-Japan spend lot of expense other than direct to business. Public company should not.