This study evaluated the procedures and results of the identification of children with Perceptual-Communicative Disorders (PCD) in Colorado. The process of identification includes referral, assessment, staffing and placement. The number of children identified as PCD by current procedures is large and growing. Variations in the prevalence of PCD among units and across years suggest the existence of local patterns in identification, and reflect the fact that PCD is an ambiguous diagnosis. Colorado's definition of PCD is conceptually similar to the federal definition of specific learning disabilities, characterized by a significant discrepancy between ability and achievement, attribution of the cause of the discrepancy to a processing disorder, and exclusion of other causes for poor achievement. During assessment, the typical child is given 6.6 tests plus several informal assessments by an average of 7.6 professionals. Of the 18 most frequently used tests, only five are adequate. Between 59 percent and 74 percent of pupils identified as PCD do not match the legal definitions. These identification procedures do satisfy state and federal requirements, but it costs almost as much to identify a child as PCD as it does to treat him or her for a year. (Author/BW)