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To: Chuzzlewit who wrote (573)2/18/1999 6:18:00 PM
From: norm chin  Respond to of 1492
 
"...what a lot of people don't seem to appreciate is that these changes are reflective only of accounting policies, not performance. What will happen is that the assets will increase and a writeoff will be taken over a number of years..."

I share your view, Chuzz; nicely put. norm.



To: Chuzzlewit who wrote (573)2/19/1999 7:09:00 AM
From: Edwarda  Read Replies (1) | Respond to of 1492
 
Well said, Chuzz!

In some cases I have noticed that companies have stretched the interpretation of what can be written off to the max. The rules for writing off in-process R&D specify that the products should not yet have reached technological feasibility. I have seen cases where the products have, in fact, reached this stage, yet the acquiring company has written off all in-process R&D. In these cases, the SEC is merely enforcing current regulation.