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  "docSlug": "778e2cbfbfaa",
  "documentTitle": "Amdocs Limited (DOX)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-01-23 00:00:00",
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  "pageNumber": 47,
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  "notes": "The slide uses a 'fraud-exposure' framework to highlight accounting irregularities.",
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      "kind": "callout",
      "text": "We are concerned that Amdocs is not only capitalizing expenses, but parking them in an unamortized account, thus avoiding any expenses which it would otherwise incur through either direct expensing or amortization of capitalized costs. The relative growth in Amdocs’ “Unamortized software assets” would appear not to make sense if the account represented legitimate costs related to software currently under development. Software isn’t under development forever, after all (at least it shouldn’t be...).",
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      "kind": "callout",
      "text": "We are concerned that Amdocs is not only capitalizing expenses, but parking them in an unamortized account, thus avoiding any expenses which it would otherwise incur through either direct expensing or amortization of capitalized costs.",
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      "text": "Unamortized Capitalized Software as a % of Computer Equipment (Gross)",
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      "text": "Unamortized Capitalized Software as a % of PP&E (Gross)",
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      "text": "Unamortized Software Assets",
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      "text": "We are curious as to why Amdocs’ “Unamortized software assets developed for internal use” account has grown rapidly as a percentage of total fixed assets – both gross and net. If it truly represents software developed by the Company, these capitalized costs should gradually be transferred out of this account once the associated software reaches the post-development stage and is put into use, and henceforth amortized (or written off if the software is deemed obsolete), thus leaving the “Unamortized software” account a relatively steady share of net fixed assets. The transfer of these assets out of the “Unamortized software” account, which should be designated specifically for software still under development, should also keep this account a relatively steady share of gross fixed assets. In practice, we observe that this account has grown faster than both Amdocs’ total Computer Equipment (Gross) account and its total Fixed Assets (Gross).",
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      "text": "Suspicious Growth In Unamortized Software Account",
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