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This is in response to comments in several posts. When a billing is allocated on the basis of an underlying accounting process, to bill properly means that the allocation of costs to be billed comply standard cost accounting principles. In the case of a public company or government agency,the allocation model is audited by the external auditors or the GAO. Amongst other things the allocations must be reasonable, supported properly, and consistent from year to year.   Power plants in the United States are depreciated over the estimated life of the plant. The plant's life is based on Iowa engineering curves, which if I remember correctly every power generator in the U.S. has agreed to use. This is important for jointly owned power plants, i.e. the South Texas Nuclear Steam Electric Station is owned by three utilities, each of which is billed proportionally for its stake in the plant. Amtrak uses straight-line depreciation. It classifies its assets by group and amortizes the group as a whole. If it has a gain on the disposal of an asset, it does not recognize it, which is a conservate approach, although it is unlikely that it would have a gain on the disposal of its assets. Locomotives, cars, and other rolling stock are depreciated on schedules ranging up to 42 years. Right-of-way and other properties (excluding land) are depreciated using useful lives up to 105 years. Other equipment (office equipment, computers, etc.) is depreciated using useful lives up to 20 years. The cost of internally developed software is capitalized and amortized over 5 to 10 years.   I don't understand Frailey's comment regarding depreciation schedules in Japan. What do they have to do with the United States? If the NEC were depreciated over 30 years, its operating loss would be significantly higher than it is now.   Businesses in the United States follow GAAP. Government agencies follow GAAS. Amtrak is a business. It follows GAAP. The Europeans and the Japanese follow the accounting rules promulgated by the International Accounting Standards Board. As a result, a one for one comparison between U.S. entities and most overseas entities is difficult.
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