DEPRECIATION ACCOUNTING AND PUBLIC UTILITY VALUATION.
Abstract If one were called upon to express in general terms and briefly the essential nature of the accounting problem, one could hardly improve upon the statement that, in its largest aspects, it is the problem of distinguishing between charges to income and charges to capital. The problem of depreciation, with its economic and accounting implications, has not always received the attention which it receive today. It is because of the relationship between these two problems-the theory and practice of current depreciation accounting and the treatment of depreciation in public utility valuation that the present thinkers suggested the arrangement of a program for their discussion. While accounting theory and practice give preference to the periodical allowance method, the retirement method is not to be wholly condemned. The propriety of a method of accounting for depreciation is to be tested by the general accuracy and precision with which it allocates costs to the proper product units or productive periods and expresses, for general balance sheet purposes, asset valuations.
- DOI
- 10.2308/tar-8594968
- Volume
- 5 (2)
- Pages
- 99-105
- Language
- en
- Export
- BibTeX
- Sources
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