RE: Depreciation...

["jt" <jt@xxxxxx>]

Donald,

I understand the problem of keeping up on all the lists.  You might consider
adding the non-tech, because you obviously have a lot to contribute in that
area.

I'll post all this to that list.

Thanks for writing, and for the education...!

jt

> -----Original Message-----
> From: Fisher, Don [mailto:Dfisher@roomstoreeast.com]
> Sent: Monday, November 12, 2001 9:51 AM
> To: 'jt@ee.net'
> Subject: RE: Depreciation...
>
>
> I don't subscribe to the non-technical list, so I am replying privately.
>
> The FASB has always issued SFAS, but those statements are usually referred
> to as FASB XX by accounting professionals, probably because FASB is easier
> on the tongue than SFAS.
>
> U.S. tax law is not based on generally accepted accounting principles
> (GAAP)and never was.  U.S. tax law is based on public policy as determined
> by Congress and the President.  GAAP would never allow a piece of
> equipment
> with a useful life of several years to be expensed in one year, as tax law
> allows.
>
> There are many examples of differences between U.S. tax law and GAAP.  If
> there were not, deferred taxes accounting, which attempts to
> quantify these
> differences, would not foster as much research and discussion.  At least
> there was a lot of discussion going on when I took the exam so many eons
> ago.  I've rather lost track of it since then.
>
> Donald R. Fisher, III
> Project Manager
> The Roomstore Furniture Company
> (804) 784-7600 ext. 2124
> DFisher@roomstoreeast.com
>
> <clip>
> SFAS...?  You mean they don't issue FASBs anymore?  Are they the same
> concept?
> <clip>
> I believe that it would be correct to say, then, that U.S. tax
> law is based
> on GAA, and therefore SFAS.  As you said, the IRS is tasked with issuing
> interpretations
> of U.S. tax law.
>