3 ms·
In GAAP you don't have to do calendar time-based depreciation (assuming you're dealing with something that doesn't have a finite life, e.g. nuclear fuel rods).
by jdavis703 9y ago
In GAAP you don't have to do calendar time-based depreciation (assuming you're dealing with something that doesn't have a finite life, e.g. nuclear fuel rods). There's also usage based depreciation, so, for example, you only depreciate the cost of the GPU while the computer is powered-on or the cost of a truck based on how many miles it's gone.
- kgwgk 9y agoI think he's concerned about the opportunity cost, not accounting issues.
- zdkl 9y agoGAAP or not if I have $BIGINT tied up on a boat haul (there's a joke about liquidity in here somewhere) with no returns while the operational cost of the task to be done rises, there's a cost.
- caf 9y agoDepreciation is probably not a concern, but inventory management sure would be. 6-8 weeks shipping implies you have 6-8 weeks worth of sales at sea at any one time, which is potentially a lot of money to be tied up.
- umanwizard 9y agoI think the point was that due to upgrade cycles being what they are, a given model of graphics card will be less valuable in actual reality after a few months at sea; not just less valuable according to accounting.
- martinald 9y agoYes exactly, say you are on a 12month refresh cycle of your GPUs at Nvidia/AMD - 2 months is nearly 1/6th of that. AMD or NVidia could 1up them by air shipping, which is very low cost considering the value per kg of the shipment.
- deleted 9y ago[deleted]