Want this question answered?
increase inflation
accumulated depreciation is a part of financial statement while its counteract or effect is recorded into income statement as a Depreciation Expense.
Depreciation is a fixed cost because variable cost is that cost which change with the change in the production units but it doesn't put any effect on depreciation as depreciation of the equipment will remain same no matter you produce maximum number of units or produce no unit in fiscal year.
The amount of Depreciation allowance of any year which cannot be absorbed due to nonavailability of profits or gains chargeable for that year of such profits or gains being less than the allowance then the allowance or part of the allowance to which effect has not been given is treated as unabsorbed depreciation.
Cash dividend affects the cash and remaining items does not have any effect on cash like depreciation or accounts payable.
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.
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.
Depreciation Expense reduces net income and has no effect on cash flow.
Net Domestic Product NDP
Net state Domestic Product = Gross Domestic Product(GDP) - Depreciation
is net invesment = gross investment - depreciation
The foreign currency against domestic currency is the buying and selling
accumulated depreciation is a part of financial statement while its counteract or effect is recorded into income statement as a Depreciation Expense.
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.
It really doesn't show any good signs.