DEPRECIATION VERSUS BETTERMENT ACCOUNTING FOR TRACK STRUCTURES

Much of the ICC-prescribed accounting established in 1914 remains basically unchanged today, particularly as it relates to betterment accounting for track structures. This accounting, say the authors, has led to misstatement of economic fact which have had serious adverse financial repercussions in terms of the industry's treatment under tax laws and its inability to maintain its financial strength through recovery of its capital investment. Determination of costs for adequate rate levels is also difficult. While switching to depreciation accounting by itself would not solve all problems, it would provide a better basis for making many crucial decisions important to the future of railroads.

• Corporate Authors:

  Andersen (Arthur) and Company

  815 Connecticut Avenue, NW
  Washington, DC  United States  20006
• Authors:
  • Kujawa, L J
  • Wisniewski, H G
• Publication Date: 1974-10-11

Media Info

• Pagination: 33 p.

Subject/Index Terms

• TRT Terms: Accounting; Analysis; Costs; Depreciation; Economic analysis; Policy
• Identifier Terms: U.S. Interstate Commerce Commission
• Uncontrolled Terms: Cost analysis
• Old TRIS Terms: Government policies
• Subject Areas: Economics; Finance; Policy; Railroads;

Filing Info

• Accession Number: 00071761
• Record Type: Publication
• Files: TRIS
• Created Date: Dec 13 1974 12:00AM