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Elsewhere, commercial farmers buy costly new pumps and work them hard to amortize them before it's too late.
If lawmakers want to help all businesses invest more here, they should embrace the administration's call to let companies immediately write off the entire cost of their investments in facilities and equipment, rather than gradually amortize them.
The SEC ordered the restatement, forcing Pre-Paid to expense sales agents' commissions immediately, rather than amortize them over future periods.
It's not that Google shouldn't capitalize these costs, says Mulford, but better disclosure of what these outlays are for, and how Google determined the period over which to amortize them, would be useful.
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Because AOL considers such expenses capital investments, it amortizes them over time.
"We surveyed 18 publicly traded companies with franchise operations, four of which had reacquired franchises, and they had amortized them," Mr. Vickrey said.
"In consultation with our prior auditors, Arthur Andersen, we treated payments made in connection with these agreements that were entered into between 1992 and 1999 as prepaid assets, and amortized them in accordance with the underlying economics of the agreements," Household told the SEC.
A change in accounting rules that dictates how the media industry handles acquisitions goes into effect for the first reporting date after December 2001, and requires companies to take goodwill charges all at once instead of amortizing them over time.
"The long-term lease allows them to amortize their construction costs and it saves taxpayers money".
Neither idea went anywhere, mainly because the networks decided that spending extra money on repeats defeated the point of using them to amortize costs.
Owners of professional sports team have been trying for years to persuade the I.R.S. to allow them to amortize their increasingly lucrative media deals, but the I.R.S. has ruled that those are continuing assets, and nondeductible under special tax rules established in 1993 for professional sports.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com