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Delving into depreciation

Should you ignore depreciation while analysing companies?

Delving into depreciation

If you read a company's financial statements, it's likely that you will come across the term 'depreciation'. Depreciation allows companies to spread the cost of an asset over its useful life. Say, a company bought a computer for Rs 50,000. With depreciation accounting, instead of recording the entire amount as an expense in a single year, the company can capitalise it in its b


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