Does charging depreciation means the costs

does charging depreciation means the costs of machinery/assets used in an year ?
Replies (6)
Quick Summary
This discussion clarifies that depreciation is a charge, not a cost, and is added back to operating cash flows. It's an amount set aside from an asset's cost for repairs or extending its useful life. The conversation also distinguishes between projections, which are future financial forecasts, and provisional statements, which are nearly complete immediate period financial statements requiring minor adjustments.

Depreciation is an inflow fundamentally.Amount set aside from the cost to take care of repairs or increase the useful life of the asset.
What is mean by projection in Accounting??? and provisional
@ MPR Sanjay Kumar

Projection is when you 'project' the financial statements for a future period say more than 3 years. This is based on previous data of last say 5 years.

Provisional is when the financial statements for the immediate period is 'almost' ready. This might need some minor adjustments. This is more realistic than projected as the period is just completed but minor changes/adjustments might be required or auditor's approval might be required.

So in comparison, provisional is much more realistic than projections as the projections are of future periods based on past years.
Thank you sir
Projection is a seperate concept undertaken to extrapolate the entire balance sheet of a concern either for the following reasons;
1. use it as a tool for future projects.
2. to be used as a tool for financial institutions.

Depreciation is a charge and not a cost. That is why it is added back to operating cash flows and other gains like forex gains which aren't realised yet. However, costs incurred are subracted like taxes paid

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