locked Re: Cleaning out the accounting books
We refer to cars that still have an accounting record but do not physically exist as ghost cars. They have soul, but their mortal bodies have left this earth. Movement records are generally researched by Mechanical and Equipment Planning, and if a car is found to not be moving, field personnel try to find it. If it can’t be found it is recommended for retirement as a ghost.
To do a little more of a dive into boring accounting, Capital Accounting processes the retirements without salvage. As you may or may not be aware, under group depreciation, an asset generates depreciation expense until it is retired, regardless of its intended life. As a result, it is important to get non-existent assets off the books to avoid overstating expenses and understating net income. This situation can also cause some concern during depreciation study time if there is a large number of ghosts. Fortunately, we only have a handful nowadays. During the Conrail acquisition, though, it was very common to see large numbers of cars being retired as ghosts since CR’s records weren’t that good at times.
On Dec 23, 2019, at 12:16 PM, George Eichelberger <geichelberger@...> wrote: