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AIM 1-2-3
At the beginning of the 19th century, there was an historical event that was the catalyst for developing what has become one of the most commonly used business strategies. The building and expansion of the railroad system forced corporations to have to raise capital to an extent they never had to before. Previously, these large projects were funded by the government. Now with corporations having to have significant capital outlay, the creation of depreciation came into existence and along with it more robust reporting structures. This has evolved from the beginning with real estate, to equipment and then to the application to intellectual property in the 20th century. The use of depreciation and amortization is so second nature that we don't even think about when it didn't exist. IRC §1250 and §1245 have been codified to cover depreciation and amortization.
There is a patented methodology that follows the same path that the introduction of depreciation followed, with the impact being similar in its influence, power and effect: The AIM (Actuarially Initiated Measurements) Program.
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