Example of things things you realize with Accounting

Wife: hallu

Nikolas: hey babe, studying accounting

Wife: wazups! feel free to ask me shit

Wife: btw i talked to my offcmate accountants re cattle depreciation

Wife: yeah, it doesn't exist!

Nikolas: shit babe. need some?

Wife: we agree that it's a crap problem

Wife: need some what

Nikolas: cattle depreciates, its arbitrary kaya isemantics yan

Wife:

Wife: i'm saying the auditors won't allow it. the auditors are the enforcers of the accounting law! there is a limit to arbitraryness

Nikolas: so a carabao being used extensively, beyond its rules of thumb, cannot be depreciated?

Wife: yes.

Nikolas: wow, the only way I can actually create a accountable loss of asset is if I have a group of carrabous and cripple one as a loss of asset

Nikolas: I can just attribute it to the work load and write it off as a loss/expense

Wife: i think it is like supplies. you don't depreciate supplies, it's just there

Wife: you expense it as your stock is reduced

Nikolas: yeah, but a crippled cow is still arbitrarily a loss in diminished assets

Wife: kaya nga. you write off the cow. done

Nikolas: its just useless meat untill you kill it.

Nikolas: so to create a depreciation that can be counted against your taxes and your assets you have to find a way around the depreciation

Nikolas:

Wife: bottomline - don't rely on cattle. buy a car.

Wife: buy a tractor

Nikolas: anyway lifestock all suffer risk, if an insurer would take it on bka its a way around the actual reduced work life capacity of an aging carabao.

Wife:

Nikolas: hey I know the risks of working with lifestock (and the gains) and historically work animals are just as vulnerable to loss because of work related causes as much as people (if not greater).

Wife: i suspect ppl with ranches of cattle get it insured (e.g. big commercial farms) but not farmers who only have 1-2 animals on hand

Nikolas: it doesnt help the farmers if they can't calculate the depreciation of their carabao.

Wife: i don't think farmers do any accounting except for minor recording of output volume

Last message received on 10/7/2009 at 2:35 PM

Nikolas: yeah, but the carabao (without greater capitalization) is still central to their productivity uptil now. If senators were more concerned about farmer's then they should account for the risk of these small farmers... corporate farms can use depreciation but regular farmers can't

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