Out with the old F-35 logic, in with the new


Colin Horgan finds that an old accounting for the F-35 procurement seems to have disappeared.

Meanwhile, through Colin, National Defence attempts to rebut Andrew Coyne’s clarification of the F-35 lifecycle timeline.


Out with the old F-35 logic, in with the new

  1. People are mixing up different rules and approaches.

    If you are doing a financial analysis, and you have a number of expenditures for 12 years before taking delivery of the aircraft (that last for 30yrs) then you do use the 42 years and discount back to present day.

    If you then decide to go with that purchase, and want to average costs over the operating life of the aircraft for accounting purposes, then you take the total costs over the 42 yr period, and prorate it over 30 yrs. (accountants use this type of approach for depreciation for example – capital costs prorated over 30 yrs -this approach called straight line depreciation)

    The misreporting of costs could be as much ignorance/incompetence as intentional.

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