Summary of Statement No. 73

Reporting a Change in Accounting for Railroad Track Structures—an amendment of APB Opinion No. 20 (Issued 8/83)


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.