koba

the Two numbers can be different. On the SCF you use the difference of accumulated deprecation on the balance sheet and not the depreciation expense on the income statement.

reason I know this is because I have taken the CMA exams. I'm not sure if the details for this are in the accounting section of CFA, I haven't covered it yet.

there are two instances when depreciation is not recorded as depreciation expense:

1. it becomes a product cost because GAAP accounting requires aobsortion costing. in this case depreciation becomes apart of COGS, inventory or Work in process (WIP)

2. fixed assets used for R&D are to be expensed to R&D and not depreciation.

this is why you need to use accumulated depreciation and not income statement. you will see the numbers match compared to the SCF and BS.