WHY RETIREMENT-REPLACEMENT-BETTERMENT ACCOUNTING SHOULD CONTINUE TO BE APPLIED TO RAILROAD TRACK STRUCTURE

The author concludes that the retirement-replacement- betterment method of depreciation for railroad track components reflects a reasonable and accurate charge against income. The present method is consistent with the ratable method of depreciation where mature asset accounts are involved. A huge, but inestimable expense would be incurred if it were attempted to maintain corporate records that itemize specific components of the track structure so precisely that they would be accurate for ratable depreciation. The years of changeover would produce operating results which would not be comparable with those for prior periods, serving neither the industry or investing public as railroads compete in capital markets.

• Supplemental Notes:
  • This paper is from Transportation in Focus, Proceedings of the Fifteenth Annual Meeting of the Transportation Research Forum, San Francisco, California, 10-12 October 1974.
• Corporate Authors:

  Cross (Richard B) Company

  Oxford, Indiana,   United States  47971
• Authors:
  • Casey, R J
• Publication Date: 1974

Media Info

• Pagination: p. 246-253
• Serial:
  • Publication of: Cross (Richard B) Company
  • Volume: 15
  • Issue Number: 1

Subject/Index Terms

• TRT Terms: Accounting; Capital investments; Finance; Investments; Railroad tracks
• Identifier Terms: U.S. Interstate Commerce Commission
• Old TRIS Terms: Fixed investment; Uniform accounts
• Subject Areas: Economics; Finance; Railroads;

Filing Info

• Accession Number: 00072725
• Record Type: Publication
• Source Agency: Transportation Research Forum
• Report/Paper Numbers: Proc Paper
• Files: TRIS
• Created Date: Jan 9 1975 12:00AM