Summary of Statement No. 73
Reporting a Change in Accounting for Railroad Track Structures--an amendment of APB Opinion No. 20 (Issued 8/83)
Summary
This Statement amends APB Opinion No. 20, Accounting
Changes, to specify that a change to depreciation accounting
for railroad track structures shall be reported by restating
financial statements of all prior periods presented. The Statement
is effective for changes made after June 30, 1983; however, earlier
application is encouraged but not required. Prior to 1983,
railroads generally followed betterment accounting for track
structures in their general purpose financial statements. In 1983,
the Interstate Commerce Commission (ICC) adopted changes requiring
depreciation accounting in ICC filings. As a result, railroads and
their accountants requested a determination of how best to report a
voluntary change from betterment to depreciation accounting for
general purpose financial reporting. This Statement is a response
to that request.