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The value of the Assets of a Company is depreciated over their productive life. Depreciation is a non-cash expense. Thus, the depreciation schedule will reduce taxable income.

Depreciation is an accounting charge which is used to decrease the value or depreciate the value of a productive asset. For example, a computer purchased FY0 will have its value depreciated over a period of time to zero in FYX. In accounting terms, this indicates an end to its value to the company, or obsolescence. Depreciation is a non-cash charge and an adjustment is made in the Cash Flow Statement to reflect the non-movement in Cash Flow over the FY.


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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: or Telegram +393339034488

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Smartest Data aims to be your go-to source for analysis and commentary on Investments, Personal Finance and the Global Stock Markets. The aim is to provide our readers with insightful and actionable information for independent minded Investors.  Dissecting  the daily avalanche of Data produced by the Stocks Market by using data Websites  and Apps available to people at home. Join us, to be Driven by Data to navigate the Investment universe markets and make better informed investment decisions.