Depreciation Schedule Quotes

He made a gesture I can't describe: 'Gentlemen, welcome to the world of reality--there is no audience. No one to applaud, to admire. No one to see you. Do you understand? Here is the truth --actual heroism receives no queues up to see it. No one is interested.' He paused again and smiled in a way that was not one bit self-mocking. True heroism is you, alone, in a designated work space. True heroism is minutes, hours, weeks, year upon year of the quiet, precise, judicious exercise of probity and care--with no one there to see or cheer. This is the world. Just you and the job, at your desk. You and the return, you and the cash-flow data, you and the inventory protocol, you and the depreciation schedules, you and the numbers.' His tone was wholly matter-of-fact.

Herzog, who were you with before being recruited by the Monster Control Bureau?" "Internal Revenue Service." God help us. "Oh… well… okay then." That made sense. I had a sneaking suspicion that she had once audited my old job. Somebody from the IRS had actually taken the time to draw frowny faces in red ink on a depreciation schedule that I had filled out. She seemed like the type.

Suppose, for example, the CEO's year-end bonus is based on growth in earnings per share. Assume also that for financial reporting purposes, the corporation's depreciation schedules assume an average life of eight years for fixed assets. By arbitrarily amending that assumption to nine years (and obtaining the auditors’ consent to the change), the corporation can lower its annual depreciation expense. This is strictly an accounting change; the actual cost of replacing equipment worn down through use does not decline. Neither does the corporation's tax deduction for depreciation expense rise nor, as a consequence, does cash flow11 (see Chapter 4). Investors recognize that bona fide profits (see Chapter 5) have not increased, so the corporation's stock price does not change in response to the new accounting policy. What does increase is the CEO's bonus, as a function of the artificially contrived boost in earnings per share.