By Phil Kenkel, Bill Fitzwater Cooperative Chair, Oklahoma State University.
Fixed assets are a necessary evil for agricultural cooperatives. Along with fixed assets comes the topic of depreciation. Depreciation can be thought of in at least three ways. The layman’s concept of depreciation is the decline in market value with use or obsolescence. We all expect a truck to depreciate when we drive if off the lot. That’s a great example to explain depreciation to teenagers but doesn’t help us …