BLM70040 - 바카라 사이트˜Income-into-capital바카라 사이트™ schemes and back loaded leases: Introduction to back-loaded leases: negative depreciation
Usually, depreciation is a deduction in arriving at profits but in the example at BLM70035 there are additions (in Year 1) to bring the rentals due for the year up to the GAAP earnings. Lessors call these additions 바카라 사이트˜negative depreciation바카라 사이트™, in contrast to ordinary depreciation which is 바카라 사이트˜positive바카라 사이트™. This is only a matter of presentation which largely derives from the accountancy approach before SSAP 21 was issued in 1984. Negative depreciation, like 바카라 사이트˜positive depreciation바카라 사이트™, is simply a balancing entry so that the rentals due plus 바카라 사이트˜depreciation바카라 사이트™ equal the 바카라 사이트˜interest바카라 사이트™ earnings. The contra entry for depreciation is in the lessee debtor accounts shown in the balance sheet. Negative depreciation increases the balances; positive depreciation reduces them.