Craig Flindall, the Bears' finance director, said: "The significant
depreciation charge will be a feature of our financial results for the foreseeable future."
However, the current downturn in economy, in addition to increased
depreciation charge, incurred by the company due to launch of the new fiber optic capabilities, is expected to keep profitability in check.
Lease agreements typically run for 24 to 48 months and are made up of three parts: a
depreciation charge, a finance charge and sales tax.
For example, if you divide an organization's accumulated
depreciation charges by its total
depreciation charge for any given year you'll get an index called the accounting age of plant and equipment (lower means "newer" equipment).
Management's prediction of the future value of the asset impacts the size of the
depreciation charge.
At the same time, after taking account of a
depreciation charge resulting from a revaluation of fixed assets, and the money made from the sale of two hotels - Dublin's Green Isle and the Tara - pre-tax profits edged up 0.3 per cent, to EUR25.24 million, which was in line with forecasts.
Increased security and insurance costs following the September 11 terrorist attacks, plus a full year's
depreciation charge on the new terminal building had offset the benefit of a 31pc increase in passenger numbers.
Sales at Liverpool JLA leapt from pounds 14.8m to pounds 21.42m,although operating losses widened from pounds 840,000 to pounds 1.5m,but this included increased insurance and security costs post-September 11 and the first full year's
depreciation charge on the new pounds 32.6m terminal.
The remaining useful life of the subject property is accounted for by a
depreciation charge to the replacement costs new.
Depreciation Charge for Equipment Used by a Maquiladora
After a year of limited new investment, Richmond Foods Plc, tel:0167 742 3397, tell us their capital expenditure programme will be higher, broadly in line with their
depreciation charge for the current year of [pounds]3m.
Depreciation charge: (Cap cost - Residual)/Term = ($27,186.04 - $17,976.75)/36 = $255,82 2.
"This reflects continued operational expenditure investment to sustain the revenue growth and a higher
depreciation charge related to the big capacity expansion projects in the US, the UK, and Poland."
However, on QoQ basis, gross margins improved due to higher net retention prices and lower
depreciation charge for DGKC.
