(j)  Investments in affiliates 
Investment in the common stock of EFT Network Services, LLC (“Dash”), a 33 1/3% owned affiliate until wholly acquired on August
13, 1999, was accounted for by the equity method until the date of acquisition. Under this method, the Company’s share of net income
or loss was reflected in the Company’s investment account, and dividends received are treated as a reduction of the investment account.
The fair value of the investment in excess of the underlying equity in net assets is amortized over 10 years. The acquisition on August 13,
1999 was accounted for under the purchase method of accounting (see note 4). 
(k)  Income taxes 
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to diff e rences between the financial statement carrying amounts of existing assets and liabilities and their
respective tax bases and operating loss and tax credit carry f o rw a rds. Deferred tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years in which those temporary diff e rences are expected to be re c o v e red or settled. The
e ffect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. 
(l)  Risks and uncertainties 
The Company has made a number of estimates and assumptions related to the re p o rting of assets and liabilities and the disclosure of
contingent assets and liabilities to pr e p a re these consolidated financial statements in conformity with generally accepted accounting
principles. Actual results could differ from those estimates. 
(m) Revenue recognition 
E u ronet recognizes revenue at the point at which the service is per f o rmed. Revenues from software licensing agreement contracts are
recognized on a percentage of completion basis whereby a pro-rata portion of revenue and related costs are recognized as the work
p ro g resses. Revenues from software licensing agreement contracts re p resenting newly released products deemed to have a higher than
n o rmal risk of failure during installation are recognized on a completed contract basis whereby revenues and related costs are deferre d
until the contract is complete. 
(n)  Research and development costs 
The Company applies SFAS 2 and 86 in r e c o rding re s e a rch and development costs. Research costs aimed at the 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 significant improvement to an existing product or process are expensed as incurred (refer to Note 24). Development costs
aimed at the translation of re s e a rch findings or other knowledge into a plan or design for a new product or process or for a significant
i m p rovement to an existing product or process whether intended for sale or use are capitalized on a pr o d u c t - b y - p roduct basis when
technological feasibility is established. 
Technological feasibility of computer software products is established when the Company has completed all planning, designing, coding,
and testing activities that are necessary to establish that the product can be produced to meet its design specifications including functions,
f e a t u res, and technical perf o rmance re q u i rements. 
Capitalized software costs are amortized on a pro d u c t - b y - p roduct basis equal to the greater of the amount computed using (a) the ratio
that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or (b) the
straight-line method over the remaining estimated economic life of the product, generally three years, including the period being re p o rt e d
on. Amortization commences in the period when the product is available for general release to customers. 
(o)  Loss per share