SAN JOSE, Calif. (CBS.MW) -- Cisco Systems was criticized in Barron's on Saturday for aggressive accounting based on the way it books "pooling of interest" acquisitions.
The critique cited three deals in Cisco's fiscal year 1999 for which it paid $400 million in stock yet booked a cost of $45 million.
In the two fiscal years ended July 2000, the network-systems manufacturer "suppressed" $18 billion in acquisition costs, according to accountant Abraham J. Briloff, who wrote the Barron's piece.
Briloff also criticized how San Jose, Calif.-based Cisco (CSCO: news, msgs) treated the exercise of stock options, asserting that Cisco's net income should have been reduced by $1.6 billion in 1999 and $2.5 billion in fiscal 2000.
Cisco officials weren't immediately available to answer calls seeking comment on the article.
the way the e-tailer books revenue from online merchants featured on its Web site.
Und hier zu Amazon heute:
A disclosure by Amazon about "informal" accounting inquiries by the Securities and Exchange Commission may be a bit more problematic than expected, Barron's reported.
The publication delved into the online bookseller's disclosure last week that the SEC is looking at accounting issues concerning payment in the form of stock and cash from Internet firms on Amazon's (AMZN: news, msgs) third-party selling network.
"These relationships . . . require reporting and disclosure that involve estimates to determine fair value, the recognition of revenue over time, and the ongoing accounting for the company's investments in its partners," the company said Monday when it released its third-quarter financial results. "Estimates of fair value are based on the use of independent third-party appraisals when appropriate."
The magazine asserts that after looking at filings, press release and underwriter research, it concluded that Amazon has misled investors through insufficient disclosure of material information.
Phone calls to Amazon.com by CBS.MarketWatch.com seeking comment Saturday were not returned.
A prospectus for a eurobond offer by Amazon promoted the financial benefit the online retailer would get from its commerce partners, but it didn't explain in the document that most initial payments would come in the form of stock, not cash, Barron's reported.
Meanwhile, Amazon.com's Internet commerce partners have struggled. Living.com, for example, has filed for bankruptcy protection.
In a SEC document in January, Amazon disclosed a $30 million payment from commerce partner Audible (ADBL: news, msgs) over a period of three years.
Amazon received $20 million up front in stock with a pledge for the remaining $10 million in the third year of the agreement. Now the $20 million in Audible stock is worth about $1.3 million, the magazine pointed out.
Amazon.com said Oct. 24 it received "informal inquiries" from SEC staff with respect to accounting and disclosures for some of its Amazon Commerce Network transactions, and added that it's responded to those questions.
"Amazon.com reviewed the accounting for the transactions with its auditors and the SEC staff, and the company believes that the accounting treatment, and disclosures, were appropriate," the company said. "Amazon.com will continue to cooperate with the SEC staff if they have further questions."
The article by Barron's comes a week after it eyed accounting practices by Cisco
The critique cited three deals in Cisco's fiscal year 1999 for which it paid $400 million in stock yet booked a cost of $45 million.
In the two fiscal years ended July 2000, the network-systems manufacturer "suppressed" $18 billion in acquisition costs, according to accountant Abraham J. Briloff, who wrote the Barron's piece.
Briloff also criticized how San Jose, Calif.-based Cisco (CSCO: news, msgs) treated the exercise of stock options, asserting that Cisco's net income should have been reduced by $1.6 billion in 1999 and $2.5 billion in fiscal 2000.
Cisco officials weren't immediately available to answer calls seeking comment on the article.
the way the e-tailer books revenue from online merchants featured on its Web site.
Und hier zu Amazon heute:
A disclosure by Amazon about "informal" accounting inquiries by the Securities and Exchange Commission may be a bit more problematic than expected, Barron's reported.
The publication delved into the online bookseller's disclosure last week that the SEC is looking at accounting issues concerning payment in the form of stock and cash from Internet firms on Amazon's (AMZN: news, msgs) third-party selling network.
"These relationships . . . require reporting and disclosure that involve estimates to determine fair value, the recognition of revenue over time, and the ongoing accounting for the company's investments in its partners," the company said Monday when it released its third-quarter financial results. "Estimates of fair value are based on the use of independent third-party appraisals when appropriate."
The magazine asserts that after looking at filings, press release and underwriter research, it concluded that Amazon has misled investors through insufficient disclosure of material information.
Phone calls to Amazon.com by CBS.MarketWatch.com seeking comment Saturday were not returned.
A prospectus for a eurobond offer by Amazon promoted the financial benefit the online retailer would get from its commerce partners, but it didn't explain in the document that most initial payments would come in the form of stock, not cash, Barron's reported.
Meanwhile, Amazon.com's Internet commerce partners have struggled. Living.com, for example, has filed for bankruptcy protection.
In a SEC document in January, Amazon disclosed a $30 million payment from commerce partner Audible (ADBL: news, msgs) over a period of three years.
Amazon received $20 million up front in stock with a pledge for the remaining $10 million in the third year of the agreement. Now the $20 million in Audible stock is worth about $1.3 million, the magazine pointed out.
Amazon.com said Oct. 24 it received "informal inquiries" from SEC staff with respect to accounting and disclosures for some of its Amazon Commerce Network transactions, and added that it's responded to those questions.
"Amazon.com reviewed the accounting for the transactions with its auditors and the SEC staff, and the company believes that the accounting treatment, and disclosures, were appropriate," the company said. "Amazon.com will continue to cooperate with the SEC staff if they have further questions."
The article by Barron's comes a week after it eyed accounting practices by Cisco
