Depreciating aircraft parts, dealing with taxes, etc.

Matt Barrow wrote:
t ain't
spent.
Written against a liability, rather than Earnings.
This is true. If it weren't the case no corporation would ever pay taxes.
They'd just say the money they earned was going to be spent for widgets at
some time in the future.

That's not how a pre-paid expense works.


A reserve account is NOT a pre-paid expense.

A pre-paid expense requires you to pay it to someone.