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These excerpts taken from the TRAK 10-K filed Feb 24, 2009. Use of
Estimates
The preparation of consolidated financial statements in
conformity with accounting principles generally accepted in the
United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and
liabilities at the date of the consolidated financial
statements, as well as the reported amounts of revenues and
expenses during the reporting period. Actual results may differ
from those estimates, and such differences may be material to
the consolidated financials statements.
On an on-going basis, we evaluate our estimates, including those
related to the accounts receivable allowance, the fair value of
financial assets, acquired intangible assets, goodwill, and
other assets and liabilities; the useful lives of intangible
assets, property and equipment, capitalized software and web
site development costs; FAS 123(R) assumptions including
volatility, expected term and forfeiture; and income taxes,
among others. We base our estimates on historical experience and
on other various assumptions that are believed to be reasonable,
the results of which form the basis for making judgments about
the carrying values of assets and liabilities.
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Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates, and such differences may be material to the consolidated financials statements. On an on-going basis, we evaluate our estimates, including those related to the accounts receivable allowance, the fair value of financial assets, acquired intangible assets, goodwill, and other assets and liabilities; the useful lives of intangible assets, property and equipment, capitalized software and web site development costs; FAS 123(R) assumptions including volatility, expected term and forfeiture; and income taxes, among others. We base our estimates on historical experience and on other various assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Table of ContentsThis excerpt taken from the TRAK 10-K filed Mar 16, 2007. Use of
Estimates
The preparation of consolidated financial statements in
conformity with accounting principles generally accepted in the
United States of America requires management to make estimates
and assumptions that affect the amounts reported and disclosed
in the consolidated financial statements and the accompanying
notes. Actual results could differ materially from these
estimates.
On an on-going basis, we evaluate our estimates, including those
related to accounts receivable allowance, fair value of acquired
intangible assets and goodwill, useful lives of intangible
assets and property and equipment and capitalized software and
web site development costs, deemed value of common stock (prior
to our initial public offering) for the purposes of determining
stock-based compensation expense (see below), FAS 123(R)
volatility and forfeiture assumptions, and income taxes, among
others. We base our estimates on historical experience and on
other various assumptions that are believed to be reasonable,
the results of which form the basis for making judgments about
the carrying values of assets and liabilities.
Prior to our initial public offering, our board of directors
determined the fair market value of our common and preferred
stock in the absence of a public market for these shares. For
purposes of financial accounting for employee stock-based
compensation expense and issuing preferred stock in
acquisitions, prior to our initial public offering, management
applied hindsight within each year to arrive at deemed values
for the shares underlying the options that are higher than the
fair market values originally assigned by the board. These
deemed fair values were determined based on a number of factors,
including input from independent valuation firms, our historical
and forecasted
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operating results and cash flows, and comparisons to
publicly-held companies. The deemed values were used to
determine the amount of stock-based compensation expense
recognized related to stock options, restricted common stock and
preferred stock issuances in acquisitions.
This excerpt taken from the TRAK 10-K filed Mar 30, 2006. Use of
Estimates
The preparation of consolidated financial statements in
conformity with accounting principles generally accepted in the
United States of America requires management to make estimates
and assumptions that affect the amounts reported and disclosed
in the consolidated financial statements and the accompanying
notes. Actual results could differ materially from these
estimates.
On an on-going basis, we evaluate our estimates, including those
related to accounts receivable allowance, fair value of acquired
intangible assets and goodwill, useful lives of intangible
assets and property and equipment and capitalized software,
deemed value of common stock (prior to our initial public
offering) for the purposes of determining stock-based
compensation (see below), and income taxes, among others. We
base our estimates on historical experience and on other various
assumptions that are believed to be reasonable, the results of
which form the basis for making judgments about the carrying
values of assets and liabilities.
Prior to our initial public offering, our board of directors
determined the fair market value of our common and preferred
stock in the absence of a public market for these shares. For
purposes of financial accounting for employee stock-based
compensation and issuing preferred stock in acquisitions, prior
to our initial public offering, management applied hindsight
within each year to arrive at deemed values for the shares
underlying the options that are
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higher than the fair market values assigned by the board. These
deemed fair values were determined based on a number of factors,
including input from independent valuation firms, our historical
and forecasted operating results and cash flows, and comparisons
to publicly-held companies. The deemed values were used to
determine the amount of stock-based compensation recognized
related to stock options and preferred stock issuances in
acquisitions.
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