Re: What exactly did the Js have to go to trial with? MAGS..:ANYONE
posted on
Apr 18, 2008 05:32AM
How can they report on something that is yet undeterminable or not yet received..and subject to an NDA..further they receive their money from Phoenix (does this add an additional wrinkle?). I posted an exerpt from another 10Q that spoke of multiple contracts with the same customer and how (at least by my understanding)..that they treat the revenues and perform a straight line calculation such that they don't book the revenues all at once in a lump sum..but over the respective terms of the underlying contracts..my point being (and I am not an accountant) that the rules appear to be rather complex in this regard and things many not appear on their face to be as simple as once thought..add the requirements of an NDA etc., potential impact of FASB treatment and things get even more complex..read the excerpt that someone posted with regard to Mr. Flower's answers the other day and I think he is essentially leading us in this direction..PTSC may have even consulted with a professional with regard to the NDA, SEC, FASB and reporting requirements. They may have told us all that we need to know and be compliant - it all comes down to interpretation and they probably errored on the side of the NDA..we just may not have the collective insight to figure it out (or be up on the latest FASB and SEC requirements in this regard..as these requirements do change from time to time and companies need to expend a lot of time and effort to try and comply).