SEC Company Response from ASI ENTERTAINMENT INC (CIK 0001067873) — May 19, 2005
ASI ENTERTAINMENT INC (CIK 0001067873)
Date: May 19, 2005 · CIK: 0001067873 · Accession: 0001067873-05-000010
AI Filing Summary & Sentiment
Referenced dates: May 9, 2005
Letter
ASI Entertainment, Inc. 1/12 Candlebark Crt., Research, Victoria, 3095, Australia Telephone : +61.3.9437 1028 . E-mail: info@asieinc.com May 19, 2005 Mr D. R. Humphrey Branch Chief Division of Corporate Finance United States Securities and Exchange Commission Washington, D.C., 20549
Re: Commission File Number: 0-27881
Dear Mr. Humphrey
In response to your letter dated May 9, 2005, we respond as follows:
We understand from your comments 1. and 2., that the expensing of costs for development of the G3CARS was correct and that we have mistaken your earlier comments that we should capitalize the development costs retrospectively. The costs incurred in 2004 ($77,074) and 2003 ($42,095) were undertaken to establish technological feasibility, and thus were appropriately expensed under paragraph 3 of SFAS 86. Accordingly, we will not capitalize these development costs. Pursuant to paragraph 5 of SFAS 86, we will capitalize the costs of producing product masters subsequent to February 2005, but will cease capitalizing costs when the G3CARS product is available for general release to customers. Also upon availability of the G3CARS for general release, we will expense maintenance and support costs when related revenue is recognized or when those costs are incurred, whichever comes first.
Please contact me should you have further questions.
Yours sincerely
/s/ Philip Shiels
Philip Shiels Chief Financial Officer
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<DOCUMENT> <TYPE>CORRESP <SEQUENCE>1 <FILENAME>filename1.txt <TEXT> ASI Entertainment, Inc. 1/12 Candlebark Crt., Research, Victoria, 3095, Australia Telephone : +61.3.9437 1028 . E-mail: info@asieinc.com May 19, 2005 Mr D. R. Humphrey Branch Chief Division of Corporate Finance United States Securities and Exchange Commission Washington, D.C., 20549 Dear Mr. Humphrey Re: Commission File Number: 0-27881 In response to your letter dated May 9, 2005, we respond as follows: We understand from your comments 1. and 2., that the expensing of costs for development of the G3CARS was correct and that we have mistaken your earlier comments that we should capitalize the development costs retrospectively. The costs incurred in 2004 ($77,074) and 2003 ($42,095) were undertaken to establish technological feasibility, and thus were appropriately expensed under paragraph 3 of SFAS 86. Accordingly, we will not capitalize these development costs. Pursuant to paragraph 5 of SFAS 86, we will capitalize the costs of producing product masters subsequent to February 2005, but will cease capitalizing costs when the G3CARS product is available for general release to customers. Also upon availability of the G3CARS for general release, we will expense maintenance and support costs when related revenue is recognized or when those costs are incurred, whichever comes first. Please contact me should you have further questions. Yours sincerely /s/ Philip Shiels Philip Shiels Chief Financial Officer </TEXT> </DOCUMENT>