Restoration of Fixed Asset Values to the Balance Sheet.

Abstract The article focuses on the restoration of fixed asset values to the balance sheet in accounting. The subject matter of this debate is given current importance at this time because of the procedures followed by many companies in accounting for the amortization of facilities acquired under certificates of necessity issued pursuant to Section 124 of the Internal Revenue Code. Surprisingly little attention has been given to the treatment of fully depreciated assets in accounting literature. This is probably due to the fact that the difference between the aggregate net book value of depreciable assets actually carried in the accounts and the amount that would have been had there been more accurate estimates of depreciation been followed is not sufficiently great to have a significant effect upon the statements in any but the most exceptional cases. Generally, an excessive rate of depreciation is noticed before the matter has gone so far that it cannot be remedied satisfactorily by reducing the charges during the remaining life.