C&TSRR Accounting Practices

Steve may not have an accountant's green eyeshade, but he's got the basics right. The only thing I'd add is that the usual accounting distinctions between (a) capitalizing expenditures for an asset on the Balance Sheet and (b) expensing them on the Income Statement go out the window when dealing with historic, irreplaceable assets like steam locomotives (kind'a hard to buy new ones). If the C&TSRR were running a diesel operation, accounting for locomotives would follow conventional business practice. There is one further complication, the C&TSRR audited financials have to conform to fund-accounting rules (i.e.,Government Accounting Standards Board requirements) which are enough to make one's eyes glaze over, and which bear little relationship to conventional business accounting. Anyone want a copy of the railroad's audited financials?: