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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?


To: rupert1 who wrote (59978)4/28/1999 6:49:00 AM
From: rupert1  Read Replies (1) | Respond to of 97611
 
CPQ $24.36 in Frankfurt at this time on normal volume.



To: rupert1 who wrote (59978)4/28/1999 7:07:00 AM
From: rupert1  Respond to of 97611
 
A correction to my post in which I wrote:

"The capital appreciation of AV's stock will also show up on the COMPAQ balance sheet starting as early as the day after the AV spin-off."

JDN, an accountant, has previously pointed out that this may not be so, although analysts will take into account, COMPAQ's hidden assets in Alta Vista. It will be interesting to see how the deal is structured and what value COMPAQ does place on its acquisiton cost of AV and Shopping.com and zip2 and the developmental monies it has expended in putting it all together and bringing it to market.

The following post (about another stock) supports JDN's opinion.
___________________________________
by: BBehler 1368 of 1372
In a previous life I used to be a CPA, specializing in audits of public companies. While that has been a few years ago I believe I can still answer your question about reporting unrealized gains.
If a company's primary business is something other than investing in stocks, then those investments must be reported at the lower of cost or market. However, if a company is in the business of investing in start up companies, then that company may report unrealized gains on stock appreciation.