USA Question on depreciation expense

[AndrewMew]

I am reading the Property and Equipment section of the financial statements, shown in the image below.

It says Depreciation expense associated with property and equipment was $2.5 million ... in the six months ended June 30, 2022

However, when calculating the difference between Accumulated deprecation on June 30, 2022 and the one on December 31, 2021, the value is 13515 - 10740, which is 2775 thousands rather than 2500 thousands.

Do I misunderstand something?

 

[kirby]

One way that could happen is if a parent or sister company transferred depreciated equipment to the company you show. Then accumulated depreciation could increase without an increase in depreciation expense.

 

[AndrewMew]

I later realized that an acquisition occurred in that quarter. I guess it is the reason. Still reading the Intermediary Accounting book to figure out how this difference number comes out.

 

[vavillalobos1]

Hi @AndrewMew

Another consideration to the transfer listed above could be the effect of foreign currency exchange rates on the accumulated depreciation account.

Ultimately, depreciation expense isn’t the only transaction that affects the accumulated depreciation account. There can be a wide array of transactions that occur in the real world that may or may not be illustrated in a textbook

Hope that helps!