7/19/2002 - Cypress Semiconductor Corporation President and CEO T.J. Rodgers today released an essay taking issue with GAAP reporting accuracy and potentially damaging Congressional legislation that would require companies to take a charge on their balance sheets to account for stock-options they issue to employees.
The essay, “When Accountants Attack Profits: The GAAP Accounting Exodus,” is available on the Cypress website at http://www.cypress.com/pub/gaapaccounting.pdf
Rodgers argues in the essay that the GAAP requirement to report acquisitions on a purchase basis—and to amortize the goodwill charges related to an acquisition—unfairly distorts corporate earnings and has led to an exodus of companies in Silicon Valley and elsewhere away from GAAP accounting standards.
In addition, Rodgers says that a requirement to expense stock options would add a second—potentially devastating—negative impact to corporate balance sheets at a time when corporate confidence already is low due to volatility in the market and an acute focus on reporting irregularities due to the Enron debacle.
“Both FASB and the SEC should adhere to the requirements of the Hippocratic oath—that is, to do no harm,” Rodgers said. “The current accounting system works well, it built Silicon Valley, and it ought to be left alone.”
Cypress Semiconductor Corporation (NYSE: CY) is Connecting from Last Mile to First Mile™ with high-performance solutions for personal, network access, enterprise, metro switch, and core communications-system applications. Cypress Connects™ using wireless, wireline, digital, and optical transmission standards, including Bluetooth, USB, Fibre Channel, SONET/SDH, Gigabit Ethernet, and DWDM. Leveraging its process and system-level expertise, Cypress makes industry-leading physical layer devices, framers, and network search engines, along with a broad portfolio of high-bandwidth memories, timing technology solutions, and programmable microcontrollers. More information about Cypress is accessible online at www.cypress.com
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements herein that are not historical facts are “forward-looking statements” involving risks and uncertainties, including but not limited to: the effect of global economic conditions, shifts in supply and demand, market acceptance, the impact of competitive products and pricing, product development, commercialization and technological difficulties, and capacity and supply constraints. Please refer to Cypress's Securities and Exchange Commission filings for a discussion of such risks.
Cypress and the Cypress logo are registered trademarks of Cypress Semiconductor Corporation. “Connectivity from Last Mile to First Mile” and “Cypress Connects” are trademarks of Cypress. All other trademarks are the property of their respective owners.
Previous Page | News by Category | News Search
If you found this page useful, bookmark and share it on: