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QuestionsCategory: Financials QuadrantIs Depreciation an expenses or income ?
Lim Marko asked 4 years ago

Hi Guys, 
from what i know depreciation should be an expenses under the cash flow statement, but when i look at the bread talk annual report 2016 i notice that it is income instead of exposes.. 
hope to get some enlightenment from all of your guys out there!!!
 
Your sincerely 
Marko Lim 

1 Answers
Victor Chng answered 4 years ago

Hi Marko,
 
Depreciation are expense in the income statement but under the cash flow statement is is added back because they are being paid out. For instance, the company spend 10 million on capex, it had already been expense and paid already but if record on the statement will cause a big drop to the profit hence it is depreciate for 5 years in the income statement.

Lim Marko replied 4 years ago

Hi victor,

Thanks for the enlightenment!!!!

Your sincerely
Marko Lim

Victor Chng replied 4 years ago

You are welcome Marko :)