Does depreciation mean spreading over the cost

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1359 Points Posted on 13 June 2022
does depreciation mean spreading over the cost
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On 13 June 2022 at 13:20 Report
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Quick Summary
Depreciation is essentially the process of spreading the cost of an asset over its useful life. While it can be thought of as spreading the cost, it's more accurately a provision for the reduction in value due to wear and tear or usage. This accounting practice is shown as an inflow in cash flow statements and accounts for future repairs or the replacement of assets.

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Chartered Accountant
86505 Points Posted on 13 June 2022
You can called it so, but actually it is provision for reduction in value due to wear & tear or use of such asset.
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On 13 June 2022 at 14:12
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CFO- at NHTF
58280 Points Posted on 13 June 2022
Spreading the cost over the useful life of asset
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On 13 June 2022 at 20:14
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Profession Business
28246 Points Posted on 15 June 2022
Amount set aside for future repairs . Depreciation is basically inflow .In cash flow statement we show it as inflow.
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On 15 June 2022 at 09:49
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CFO- at NHTF
58280 Points Posted on 15 June 2022
Not only for repairs but also for buying new or replacement of asset
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On 15 June 2022 at 11:29
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Chartered Accountant
86505 Points Posted on 18 June 2022
Agreed
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On 18 June 2022 at 23:37

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