Difference between D/A on an Inc Statement and on a CF Statement - more information
What is the difference between D/A on an Inc Statement and on a CF Statement??
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Are you serious? google.com
I just did and I couldn't find it?
Some firms will embed some of their depreciation into other I/S line items (like COGS or G&A), so the D&A item on the I/S does not necessarily pick up all of the firm's D&A in a reporting period. The line item on the CF/S, however, will capture all of it, because all of it must be backed out of Net Income to get to CFFO.
What he said. Ignore other posts.
D&A is not a cash item so it's not included on CF/s
You're joking, right?
Sorry, I mean just depreciation. My mistake. Am I just being a total idiot?
You add it back on the cash flow statement...therefore, it is on the cash flow statement. Is this really that hard?
Oh... I guess I didn't understand the wording. By it's not included, I meant the expense is eliminated from the statement of cash flows... My mistake on my wording.
This sums it up.
What is the difference between D/A on an Inc Statement and on a CF Statement (Originally Posted: 06/19/2012)
What is the difference between D/A on an Inc Statement and on a CF Statement
nothing - they should be the same, if they are different consider reading the footnotes.
Depreciation and Amortization is a non-cash expense so it should appear as a plain expense on a statement of operations and as an add-back to net income to arrive at cash flows from operations.
I can't think, off the top of my head, of a single instance where they'd be different amounts...
read footnotes. likely some amount of d or a baked into another p&l line item. is the cash flow statement number higher?
Always use SCF D&A in your model...like speed said, maybe not all the D&A will show up in operating expenses if some of it is embedded into COGS or something
I'm a professor at an ivy teaching FSA and financial modeling. Companies allocate D&A to a number of line items, including CGS and SGA. Sometimes you can find the detail in the notes, but sometimes you can't. The D&A amount from the SCF is the one to use in developing your model. If you have other questions let me know.
This. Can be in cogs, or any op ex. Rd, s and m, g and a.
Occasionally a company will include portions of D&A in cogs, lots of times try don't break it out. So that can cause a discrepancy between the IS and CFS.
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