Topic:"Depreciation Amortization" in M03324

nal Entities have adopted several changes in accounting methodology for presentation of their budgets, which are detailed on page 14 of Attachment 2 . The more significant of these changes include: - All expenses for the administrative ser...

AI summary NERC and Regional Entities revised 2010 budget accounting methods, including allocating indirect expenses by FTE ratios, classifying capital expenditures as Fixed Assets, and adjusting depreciation handling. FERC directed NERC to define 'indirect costs' consistently in the 2010 Business Plan and Budget.

A. 2010 Business Plans and Budgets by Program This section summarizes NERC's proposed 2010 Business Plan and Budget by statutory program and Administrative Services department. 55 As noted earlier, a number of changes in accounting methodo...

AI summary NERC's 2010 Business Plan and Budget introduced four key accounting changes: direct/indirect cost allocation, FTE-based Administrative Services expense distribution, capital expenditures as fixed assets, and depreciation treatment. These changes may distort year-over-year budget comparisons for statutory programs.