Why depreciation on an existing asset is always irrelevant?
Depreciation is an invisible, non-cash cost and it is irrelevant
when calculating the cash flow of the company which is the true
indicator of whether the company is making a profit or not.
Depreciation is also irrelevant because it is not truly realized
until the asset is resold or scrapped at the end of its life.
Recording it every year is consistent with the theory of
conservatism when writing off costs. Depriciation is also
irrelevant for the existing assets becoz it is fixed and fixed
costs are always irrelevant unless they are incremental