4-8 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong by the Group as a self-owned store in December 2018, a depreciation charge
of HK$4.8 million (2017: Nil) was incurred.
This is majorly result of new plant's operational cost, depreciation charge
jumped up, two kilns shut down for some days for maintenance and high coal prices.
Use a consistent, logical capital preservation allowance or replacement cost depreciation charge
for all equipment.
In August last year, we told how in 2016-17 the cost of the civic car, used by the provost and bailies on civic duties, was PS8,571.50.That figure comprised a vehicle depreciation charge
of PS5,900 and fuel costs of PS1,500 with the remaining amount covering repairs and maintenance, insurance and road tax.The overall total compares with a figure of PS9051.20 for the previous 12 months.
According to the operator, such a depreciation charge
is "normal for a large-scale project of this nature".
Operating profit before impairment charges and the FSCS levy dropped slightly from PS12.4m to PS11.9m, although the dip was the result of a higher depreciation charge
reflecting increased spend on staff and infrastructure.
The club's operating profit increased from PS5,000 to PS230,000, but they were hit by a net depreciation charge
of PS1.4 million related to the stadium's redevelopment.
The operating result for the year was a profit of PS4.5m - against a loss of PS668,000 in 2012 - including a depreciation charge
of PS1.4 million following Edgbaston's recent PS32m redevelopment.
Nawras Omani Qatari Telecommunications Co, better known as Nawras, said its second-quarter net profit fell 23% on year as the telco paid a higher depreciation charge
for network upgrades and margins suffered due to lower income from voice calls and text messages.
Some people argue that firms may have low or high depreciation depending upon their capital expenditure, so the depreciation charge
distorts intercompany comparisons of earnings.
The impact of sharp rise in commodity prices and inflationary pressure was compensated by aggressive cost control measures coupled with less than proportionate increase in depreciation charge
and substantial increase in treasury income.
Earnings Before Interest and Tax (EBIT) also grew by over 200% although the incremental depreciation charge
was 39% higher compared to the first nine months of 2009 consistent with ongoing investment in network expansion.