Friedberg
👤 SpeakerAppearances Over Time
Podcast Appearances
And thank you to Roxana Martinez for that incredible jingle.
I think we should adopt it.
Love it.
Love it.
Send in your jingles, folks.
Jason at All In.com.
Accounting standards 360.
Here we go.
Depreciation must reflect the asset's estimated useful life, not market innovation.
The specific language.
People love accounting corner.
Yes, it is actually important.
Under the GAAP standards, the general accepted accounting principle standards.
So you set a useful life.
and you reset that useful life as you do a reassessment on when you're actually using that asset, not necessarily if there's a better asset that makes more value.
So let's just explain this again.
You make a big investment in property plant equipment.
PP&E.
And that investment you write down over a period of time that you as an accountant estimate to be the useful life of that asset.
So if you're going to use a building for 20 years, every year you write down the cost of that building by 1 20th.