Ddweller re royalty reports from Nokia
First I agreed with you that IDCC could have already theoretically reversed the valuation allowance against the deferred tax asset, if they chose to do so. However I did previously post my opinion to you on this issue, that I thought that IDCC would probably wait until they booked the Nokia royalty before completely reversing the valuation allowance. That position seemed to be implied in the 2004 Annual Report (see my previous post).
Your argument for delaying revenue recognition appears to be centering upon IDCC receiving the appropriate royalty reports from Nokia, and not upon a favorable enforcement ruling. I suppose you are implying that either the royalty amounts are not yet fixed or determinable, or that they are not reasonably certain until Nokia somehow acknowledges the liability.
I would argue that the royalty amounts are reasonably determinable, even without the actual royalty reports from Nokia. IDCC has already published expected Nokia royalties in press releases, which were reasonably estimated from industry sources. I would think that a court ruling on the enforceability of the arbitration ruling would satisfy the reasonable collectability criteria of revenue recognition, even without Nokia's official acknowledgement thereof or possible further efforts to delay by appeal.
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