PCS » Topics » Use of Estimates in Financial Statements

This excerpt taken from the PCS 8-K filed Jun 9, 2009.

Use of Estimates in Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The most significant of such estimates used by the Company include:

 

   

allowance for uncollectible accounts receivable;

 

   

valuation of inventories;

 

   

valuation of investment securities;

 

   

estimated useful life of assets;

 

   

accrued property, plant and equipment for the percentage of construction services received;

 

   

impairment of long-lived assets and indefinite-lived assets;

 

   

likelihood of realizing benefits associated with temporary differences giving rise to deferred tax assets;

 

   

reserves for uncertain tax positions;

 

   

estimated customer life in terms of amortization of certain deferred revenue;

 

   

valuation of common stock prior to the Offering; and

 

   

stock-based compensation expense.

This excerpt taken from the PCS 10-K filed May 12, 2006.

Use of Estimates in Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The most significant of such estimates used by the Company include:

 

    allowance for uncollectible accounts receivable;

 

F-49


Table of Contents

MetroPCS, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2004, 2003 and 2002

 

    valuation of inventories;

 

    estimated useful life of assets;

 

    impairment of long-lived assets and indefinite-lived assets;

 

    likelihood of realizing benefits associated with temporary differences giving rise to deferred tax assets;

 

    reserves for uncertain tax positions;

 

    estimated customer life in terms of amortization of certain deferred revenue; and

 

    valuation of Common Stock.

EXCERPTS ON THIS PAGE:

8-K
Jun 9, 2009
10-K
May 12, 2006
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