Hi VPs, I have a question on consolidated P&L and BS of Airtel. ( Source Money control)
in P&L, Depreciation in years FY13,FY14 & FY15 is reported as around 15K.
But in Balance sheet, in the same years accumulated depreciation is changed from 37K to 60K. as per my understanding Depreciation should add to accumulated depreciation. I have seen this kind of scenario in other companies as well. Can any one please explain why there is a difference.?
Thanks
sridhar
Quick response - Some fixed assets could have been written off and might not show anymore. Assets might have been sold off - Bharti Infratel could be a big reason.
My suggestion would be to check Fixed assets schedule in the Annual report (notes to account section). My hunch is this is because of currency translation+demerger of Bharti infratel Ventures limited (BIVL).
If demerger happens it would impact one fiscal year… correct me if i am wrong. But in this case impact is in FY14 & FY15.
in FY15 incremental cumulative depreciation is only 3k where as depreciation is 15K. i dont think 12K is for Infratel ventures… am i missing something?
The calculations for accumulated depreciations are
opening balance+ Depreciation charges to P&L - Accumulated depreciation on the assets sold during the year
please see the fixed asset schedule in the annexure for complete information
