Calendar of Events

May 21, 2013 to May 22, 2013 | Washington, DC
May 21, 2013 to May 22, 2013 | Charlotte, North Carolina
May 21, 2013 to May 23, 2013 | Atlanta, GA

Keywords

Public Utilities Reports

PUR Guide 2012 Fully Updated Version

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PUR Guide

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Depreciation accounting

Fixing Depreciation Accounting

Accumulated provisions for depreciation belong on the right side of the balance sheet.

John S. Ferguson

The time has come to revisit where the accumulated provision for depreciation belongs. Utilities objected—some 50 years ago—when it was moved from the right side of the balance sheet to the left side, with good reason. Consistency, comparability, reliability and relevance all demand an end to this strange accounting practice.