currency depreciation is a double-edged sword for corporations, on the one hand it makes all your imports MORE expensive since your currency can buy LESS goods with the same amount of money, on the other, it makes your goods LESS expensive to consumers all around the world because their currency can buy MORE of your products with the same amount of their money, so if a company is a major exporter it will be positively affected, if it is a major importer, it will be affected negatively. if it is in the space between the two (which is usually the case) the results will vary depending on the elasticity of the product, the profit margin .... (between + and - )
The Rate of Depreciation on Computer as per Companies Act is 40%
increase inflation
There is no affect of depreciation on cash flow that's why in indirect method of cash flow net income is adjusted for depreciation to calculate cash flow from operating activities.
Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital: http://en.wikipedia.org/wiki/Depreciation
13.91%
Devaluation and depreciation are often interchangeable, although there is a subtle difference. Devaluation refers to changing the value of a currency in a fixed exchange rate, while depreciation is decreasing the value in a floating exchange rate.
Interest rates also have to be held down to secure a currency depreciation.
The Rate of Depreciation on Computer as per Companies Act is 40%
increase inflation
since dollarization replaces country's currency, it will lead to depreciation of local currency. Investors wont find it worth investing in a country with falling local currency as it will fetch them no good return. Also, it will affect our export. Import would be expensive.
There is no affect of depreciation on cash flow that's why in indirect method of cash flow net income is adjusted for depreciation to calculate cash flow from operating activities.
What is Depreciation on Tubular Battery under Company Act
13.91 %
60%
Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital: http://en.wikipedia.org/wiki/Depreciation
13.91%
depreciation is due to international economic pressure i.e the supply and demand of a currrency whilst devaluation is done by the government of a certain country , when it decides to set its currency or give its currency a certain value against others.