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To: Cynic 2005 who wrote (20499)	2/19/1999 11:08:00 AM
From: MythMan	Read Replies (2) \| Respond to of 86076

I'll be honest I'm not current on this in-process R&D that the tech co's deal with. Where I come from R&D is expensed as incurred. Nothing left on the balance sheet. I followed the links back and I didn't see any heavy accounting discussions. What csco does is apparently ok I personally don't think any SEC mandated change will effect their stock price.

To: Cynic 2005 who wrote (20499)	2/19/1999 4:32:00 PM
From: IceShark	Read Replies (1) \| Respond to of 86076

I looked at your posts briefly, what is the beef? R&D writeoffs? If so, then I wouldn't get too excited about it and make any big bets that the market will slam 'em. Sure it is abusive in most cases, the incentive being to reduce reported future amortization costs by taking a "one time charge" (which seems to occur like clockwork every quarter) which everyone will gladly ignore. The problem is no investors give a damn and won't recast the P&L and adjust valuations accordingly. Net income doesn't matter anymore Mo, new "metrics" of fair valuation are now used. I want to puke everytime I hear the word "metrics." -ng- As an aside, these one time charge deals get lost in history, even though they represent real cash. The "adjusted" numbers get entered into everyone's data base and you start to lose the ability to make comparison to old time periods on P/E ratios, for example. And you can call new acquisitions as immediately accretive to earnings, provided you write off 90% of the purchase price as a one time charge. -g- This is what the SEC wants to stop because everyone has gone overboard on it.