Difference between D/A on an Inc Statement and on a CF Statement - more information

re-ib-nySome 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.

kidflashD&A is not a cash item so it's not included on CF/s

You're joking, right?

kidflashOh... 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.

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.

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.