It’s monthend here, that special time each month when an accountant is tempted to slit anyone’s throat who bothers her. This month is no exception.
I have blogged in the past that I am responsible for several large units and my reconciliations are much more involved and time consuming. That means I must pay close attention to deadlines and manage my time well. What I do not expect is to answer the most inane questions about Balance Sheets.
One of the units I reconcile is the main unit for this location. All shared services are paid for by my unit. And in turn I charge out the appropriate share to the other units. Today’s question had to do with Depreciation Expense. The servers, routers, and network assets all sit on my unit’s Balance Sheet. Once a month I apportion some of my Depreciation Expense to the various units.
My depreciation Expense for Servers/Networks (Shared) = $9000.00
Twit’s portion of this is $1000.00
Under Twit’s Income Statement she has two sources of Depreciation Expense – mine (for shared services) and her’s, for assets specifically for her unit. When reporting the Balance Sheet the Accumulated Depreciation will not match Depreciation Expense because what she has on her Balance Sheet are her own assets, no one else’s.
Today’s question – why aren’t the shared assets on my balance sheet? I quite literally smacked my forehead in frustration. Why aren’t they on her BS? Because *my* unit paid for them, not her’s. But why is my depreciation expense different from Accumulated Depreciation? Because (you idiot) I just explained that what she has on her BS is her assets only, while on the IS it’s her specific depreciation and her share of depreciation for shared assets.
I also told her that I am struggling to get my reconciliations done and I would appreciate being left alone until Thursday, when I can answer all her questions.