InvestorsHub Logo

Joe Master

09/29/06 11:08 AM

#38 RE: gilead23 #37

No I am not saying they should reserve based on stock price. The rule is you reserve for what you expect the liability will ACTUALLY be. If you expect to have a $1 million in liability including interest etc you reserve $1.0 million. If there is interest added on over time you do not reserve for that in advance because that is a period charge that should be charged to that future period. In effect they were perfectly accrued.