Question on Depreciation and Accumulated depreciation
What are the reasons for the depreciation in the Income statement (for say year 2007) to be different from the difference in the accumulated depreciation on balance sheets for the years 2007 and 2006?I thought we can calculate the depreciation to be charged in the Income statement by taking the cumulative depreciation difference for the two consecutive years.
Not sure if there are certain assets that are excluded in either statements.
(Refer to the Acme example in the cash flow reading in CFA curriculum) |