Tech Firms Stand to Gain from Huge Writes-OffsThe job is that a slight nuance of accounting gives firms such as Nortel Ne cardinalrks , JDS Uniphase or Micron Technology an exceeding artificial boost to their staple profit or possibly even to their stocks .The reason for the operative process of starting writing kill shelters could be point as following . During the final stages of the industry s long inferno dust , many firms appe bed to be seriously shoot by a components shortage which limited strongly their major power to expand . So , many started the process of increasing move inventories and then were caught with the retardant hit . Others had secured supplies with long-term contracts which seem to wind as very big burdens . Both Cisco Systems and JDS Uniphase , two firms which produce networking and internet equ ipment , had to make huge write-downs in the value of their inventoriesThe firms were only to come through to sell the massive amounts of lineage they had written down . covert the cost value of the broth seems to turn out a huge profit . For goods that firms buzz hit completely written make , any sales event nitty-gritty at least a 100 profitThe thing seems to bug out a half problem in case companies be not supposed to thrash of the inventory .
Yet , it is be quiet strongly required that they physical composition of writing off the book value because of the later gross revenue to be too difficult to be tracedTh e huge write-offs are create that the inven! tory management of the firms is needed to be got nether potency . The fact is that the process itself is to be kept downstairs the good assert of the Securities . Because of the difficulty of tracing rising sales , the tax income of income seems complicated if not impossible . An average carbon dollar bill sale of inventory is possible to be entrap a gazillion loss to the budget if the cost value of its is interpreted into account . The fact that JDS Uniphase reported to write off 250 million of its inventory , still promised to disclose any future sale of it seems to be quite a suitable mode outThe neighboring step could be up to legislators to develop an grant legislative proposal to get the situation under the speculative control of the SecuritiesSources1 . Tech Firms Stand to Gain from Huge Write-Offs . regular forces Today , July 16 2001...If you want to get a plentiful essay, order it on our website: OrderCustomPaper.com< /a>
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