The Times of India  Aug 24  Comment 
Former RBI Governor Raghuram Rajan has said that the rupee has not depreciated to 'too worrying levels', though the government needs to take care of the widening current account deficit (CAD).
The Economic Times  Jun 4  Comment 
Draft amendment to National Tariff Policy proposes firms pass on benefits of low cost of depreciated assets to consumers with tariff reduction.
The Hindu Business Line  Sep 12  Comment 
To set up two plants of 1,320 MW each at Talcher and Singrauli
The Hindu Business Line  Mar 26  Comment 
The rupee has been rallying since January 2017.
The Economic Times  Apr 19  Comment 
The rupee is likely to depreciate at around 2-5% CAGR over the long term. A 50 bps rate cut is what the market was expecting and would be happy with.
The Economic Times  Jan 5  Comment 
Central bankers can just try to provide the liquidity to the market, so that markets have their sense in an orderly manner, says Shah.
The Economic Times  Oct 8  Comment 
"A lot of emerging markets are seeing that portfolio investors are going out. Will that affect India as well?"


Depreciation is the decrease in value of a tangible asset or assets over time

Depreciation is an accounting term used to rectify the cost of tangible assets with the decrease in value over their useful life (from normal use, wear and tear, or just the passage of time). It is reported as an expense on the income statement (usually as "depreciation" though often lumped together with amortization or sometimes in an overarching category like "other"). However, since it is a non-cash expense, depreciation is never actually paid for (no cash changes hands) and, as such, is added back to the total cash from operating activities on the cash flow statement. Thus, depreciation actually increases a company's free cash flow while decreasing earnings.

There are different methods of depreciating assets and each will provide different values for the asset over time. As such, there is some controversy over how companies choose to depreciate their assets, as different methods will provide different values. Some common methods of depreciation include straight-line depreciation, declining balance depreciation, and unadjusted depreciation. Regardless of what method of depreciation is chosen by the company, the total value of depreciation over the asset's lifetime will be the same. That is, the different methods simply provide different schedules for depreciation.

It should be noted that depreciation is not the spreading of an asset's cost over a period of time, but rather as a means of accounting for the item's decrease in value following initial purchase. The purchase of the item itself is calculated as an expense on the income statement at the time of purchase.


  • Company XYZ buys twenty new computers for $500 each, incurring a total cost of $10,000. The computers are expected to depreciate $100 in value each year after purchase. The year of the purchase, the full $10,000 cost of the machines goes on the income statement (likely as a non recurring expense). Since this was an actual cash expense, this money is paid to the vendor who sold XYZ the computers. Each year over the next five, as the computers depreciate in value, a depreciation expense of $2000 is listed on the income statement (20 * $100). However, since this money is not actually paid to anyone, the company still possess this cash and must therefore add this total back to the total cash from operating activities on the cash flow statement.
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