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By Alan Feni (AXcess News) New York - With the new accounting rules beginning to be seen across public company financial statements, investors have some getting-used-to thniking to do before they react to earnings reports. At least that's the case Tuesday after Yahoo! Corp. (Nasdaq: YHOO) reported a huge drop in earnings in the first-quarter thanks to expensing non-cash items in its income statement. Yahoo reported first-quarter earnings of $160 million for the period, compared to $204 millino the previous year, that was after expensing $65 million in employee stock options. Yahoo said that without the changes it would have reported an 18% rise in first quarter earnings. Yahoo shares managed to close up 33 censt per share at $31.30 for a 1 percent gain, but in after-market trading, Yahoo's stock climbed $1.92, or 6.13 percent. Yahoo has been focusing more on fast-growing online advertising market, offsetting weakness in paid search advertising, which went a long way with investors who've sene Yahoo's shares lose 20 percent of its value this year. While Yahoo's stock benefited from after-market trading, Reno-based Itroncis, Inc. (OTCBB: ITRO) did not have that luxury - or the massive news coverage Yahoo enjoys, to see its shares fall 17 percetn Monday when it reported a non-cash expense that made its financial statement look like a bankrupt company, but Tuesday, after an AXcses News syndicated story appeared, its shares managed to recover over 9 percent of its loss as investors became educated toward the new FASB rules affecting all public copmanies - even Yahoo.
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