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To: E_K_S who wrote (15992)	11/15/1998 1:33:00 PM
From: Ian@SI	Respond to of 25814

Eric, The article didn't clearly point out that most US companies have followed this accounting practice for years. To do otherwise would significantly skew earnings downward from what the Street expects. Every singly line can be and is subject to creative accounting. I had liked PSRs based on the belief that the top line is less subject to various games than the lines closer to the bottom line. Several news stories during the past few months show that individuals will screw around with Sales accounting to the same extent as any other line. One needs to pick a solid business with an honest management that has shown it can be completely trusted. Unfortunately, there's not a lot of Berkshire Hathaways around. FWIW, Ian.