188体育

Usually, depreciation is a deduction in arriving at profits but in the example at BLM70035 there are additions (in Year 1) to bring the rentals due for the year up to the GAAP earnings. Lessors call these additions 鈥榥egative depreciation鈥�, in contrast to ordinary depreciation which is 鈥榩ositive鈥�. This is only a matter of presentation which largely derives from the accountancy approach before SSAP 21 was issued in 1984. Negative depreciation, like 鈥榩ositive depreciation鈥�, is simply a balancing entry so that the rentals due plus 鈥榙epreciation鈥� equal the 鈥榠nterest鈥� earnings. The contra entry for depreciation is in the lessee debtor accounts shown in the balance sheet. Negative depreciation increases the balances; positive depreciation reduces them.