Replies to post #10102 on InterDigital Inc (IDCC)

[The Count]

vg_future - Nokia accrual of Phase II

So, any such accrued royalty can be paid as one time payment or in installments to IDCC. But, what does Nokia do? Does it have to restate it's past earnings or they already have a provision for this?


Nokia should be accruing an estimate of the royalty expenses they are incurring. When the rate is finalized, they will adjust the current year's earnings for the difference between the accrual and the actual expense. However, if you are hoping to get an idea of what IDCC can expect from Nokia's books, you can't. There is no way to determine what they booked related to IDCC because the affected accounts on Nokia's books are so large that it is impossible to make a reasonable estimate of the impact of IDCC's provision.