See

http://en.wikipedia.org/wiki/Depreciation

In article ,
MISSY wrote:

"JE McGimpsey" wrote in message
...
See

http://en.wikipedia.org/wiki/Depreciation


Quite a good article for wikipedia, but it misses one very important point.
The original purpose of charging depreciation to the P&L was to build up a
reserve in order to replace the asset when it became obsolete or BER (Beyond
Economic repair). Of course this is OK in times of little or zero inflation,
but not in times of "normal" inflation.

Hi Gordon,

Let Wikipedia know, they rely on, and crave, that sort of feedback!

Regards
Martin


"Gordon" wrote in message
...
"JE McGimpsey" wrote in message
...
See

http://en.wikipedia.org/wiki/Depreciation


Quite a good article for wikipedia, but it misses one very important
point. The original purpose of charging depreciation to the P&L was to
build up a reserve in order to replace the asset when it became obsolete
or BER (Beyond Economic repair). Of course this is OK in times of little
or zero inflation, but not in times of "normal" inflation.

"MartinW" wrote in message
...
Hi Gordon,

Let Wikipedia know, they rely on, and crave, that sort of feedback!


Will do!