Attachment leo one declaration.

This document pretains to SAT-LOA-19941116-00088 for Application to Launch and Operate on a Satellite Space Stations filing.

IBFS_SATLOA1994111600088_971881

RECEIVED APR 2 6 1995 RosenmaAn & CoLiN 1300 I9TH STREET, N.W., SUITE 200, WASHINGTON, D.C. 20036 FEDERMC@A?AUN}CI&TMS MISSION OFFICE GF THE SECRETARY TELEPHONE (202) 463—4640 TELECOPIER (202) 428—0046 NEW YORK OFFICE SAMUEL I. ROSENMAN (i896—41973) 575 MADISON AVENLUE RALPH F. COLIN (i900—1985) NEW YORK, NY 1OO22—2585 (2i2) 940—8800 @@@@,%Q& & L998 NEW JERSEY OFFICE Aprll 26 1 1995 ghs¢ g@ ONE GATEWAY CENTER suiTE 2600 NEWARK, N.J. 07102 fipgfiz 5 : e ' é’i 8 jg?g 201—645—0572 Saiailte. Ey $ Hfmfl s,.,"@ Rgoarir i By Hand Delivery fealiong! z2g@ ag.?m?i William F. Caton, Acting Secretary Federal Communications Commission 1919 M Street, N.W. wWashington, D.C. 20554 Re:— Final Analysis Communications Services, Inc. File No. 25—SAT—P/LA—95 NVNG MSS Application Dear Mr. Caton: On April 25, 1995, this office filed, on behalf of Leo One USA Corporation ("Leo One USA"), a "Reply to Consolidated Opposition to Petition to Deny" ("Reply") in connection with the above—referenced application of Final Analysis Communications Services, Inc. for authority to construct, launch and operate a Non—Voice, Non— Geostationary Mobile Satellite Systen. Attachment 1 to the original Reply included facsimile copies of an April 24, 1995 Memorandum of Record and Declaration of David G. Watkins, partner in KPMG Peat Marwick. Mr. Watkins‘ original Declaration and Memorandum of Record have been received by the undersigned, and they are submitted herewith for association with Leo One USA‘s original Reply. Should there be any questions concerning this matter, please contact Robert Mazer, Esquire, of this office or the undersigned. Very truly yours, Enclosure leelosh Member, Maryland Bar Only cc w/enc: Attached Service List

M Peat Marwick uP g?Louis Office Memorandum for Record "oy, RECEIVED * 4;53}? C @{@g‘? Date April 24, 1995 Tp,. 4 g é’ 5m222 &Lo: APR 2 6 1995 Subect Leo One USA Corporation Treatment of Experim étfilngtelllte %fimmmuwmgfsmsmymfi OFFICE OF THE SECRETARY Corporatlon (the Company) he informed me of thefollowmg 1nformat10n related to expenditures anticipated to be made by the Company in its efforts to build a experimental satellite. Facts: * The Company is considering spending several million dollars on an experimental satellite to evaluate system performance and operations. * The Company has filed an application for the use of frequencies to perform this experimental work, and anticipates the experimental application will be granted by the Federal Communications Commission. Question: *« What is the treatment of the costs associated with the construction, launch and monitoring of this experimental satellite on the books of the Company? Conclusion: If the expenditures anticipated to be made by the Company exhibit the characteristics described below for research and development costs, these costs shall be expensed as incurred. The Company shall not treat the experimental satellite and its associated costs as a current asset (e.g., inventory) or a long—term asset (e.g., property and equipment). The total research and development costs charged to expense, in each period for which an income statement is presented, shall be disclosed. This conclusion is based on guidance found in the Financial Accounting Standards Board, Current Text, Section R50, "Research and Development." The accounting for research and development costs encompassed by Section R50 shall be charges to expense when incurred. Section RS5O defines research as the "planned search of critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, or a new process or technique, or in bringing about a significant improvement to an existing product or process." Development is "the translation of research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product of process whether intended for sale or use. It includes the conceptual formulation, design, and testing of product alternatives, construction of prototypes, and operation of pilot plants." A process, as described above, may be a system whose output is to be sold, leased, or otherwise marketed to others. A process also may be used internally as a part of a manufacturing activity or a service activity where the service itself is marketed.

April 24, 1995 Page 2 Section R5O0 goes on to address the financial statement treatment of elements of costs associated with research and development. It indicates that materials, equipment, and facilities acquired or constructed for a particular research and development project, for which no alternative future uses exist (in other research and development projects or otherwise) and therefore no separate economic values, are research and development costs at the time the costs are incurred. David G. Watkins, Partner

DECLARATION 1, David G. Watkins, hereby declare under penalty of perjury as follows: 1. I am a Partner in the St. Louis, Missouri, office of KPMG Peat Marwick LLP. 2. On behalf of Leo One USA Corporation, I prepared the attached Memorandum for Record, dated April 24, 1995. 3. The statements contained in the referenced Memorandum for Record are true and correct to the best of my knowledge, information and belief. The foregoing statements are true and correct. tdhaete David G. Watkins 4. af 95 Date

LEQO ONE USA CORPORATION SERVICE LIST Scott Blake Harris, Chief* Albert Halprin, Esq. International Bureau Halprin, Temple & Goodman Federal Communications Commission Suite 650 East Tower 2000 M Street, NW., Room 800 1100 New York Avenue, N.W. Washington, DC 20554 Washington, DC 20005 {Counsel for ORBCOMM) Thomas S. Tycz, Chief* Satellite & Radiocommunication Division Raul R. Rodriguez, Esq. International Bureau Leventhal, Senter & Lerman Federal Communications Commission 2000 K Street, NW., Suite 600 2000 M Street, N.W. Room 520 Washington, DC 20006 Washington, DC 20554 (Counsel for STARSYS) Cecily C. Holiday, Deputy Chief* Henry Goldberg, Esq. Satellite & Radiocommunication Division Goldberg, Godles, Wiener & Wright International Bureau 1229 19th Street, N.W. Federal Communications Commission Washington, DC 20036 2000 M Street, N.W. Room 520 (Counsel for VITA) Washington, DC 20554 Philip V. Otero, Esq. Fern J. Jarmulnek, Chief* Vice President & General Counsel Satellite Policy Branch GE American Communications, Inc. Satellite & Radiocommunication Division Four Research Way International Bureau Princeton, New Jersey 08540 Federal Communications Commission (Counsel for GE Americom) 2000 M Street, N.W., Fifth Floor Washington, DC 20554 Leslie A. Taylor, Esq. Leslie Taylor Associates 6800 Carlynn Court Ms. Kristi Kendall* Bethesda, MD 20817—4301 Satellite Policy Branch (Counsel for E—Sat, Inc.) Satellite & Radiocommunication Division International Bureau Albert J. Catalano, Esq. Federal Communications Commission Ronald J. Jarvis, Esq. 2000 M Street, NW., Fifth Floor Catalano & Jarvis, P.C. Washington, DC 20554 1101 30th Street, N.W. Suite 300 Washington, DC 20007 (Counsel for Final Analysis) Jill Abeshouse Stern, Esq. Shaw, Pittman, Potts & Trowbridge 2300 N Street, NW. Washington, DC 20037 * Hand Delivery (Counsel for CTA)


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Document Modified: 2012-10-19 17:11:56
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