@VVS- Nice one! Most companies do monthly management accounts and would factor in the depreciation (as a cost of generating the revenue) in that month's accounts. I therefore meant that depreciation will be charged monthly (in management accounts) and if it is not possible to estimate monthly then at the very least at quarter end (for that quarter in statutory disclosures, board papers etc). The year end is still a quarter end. I didnt mean that there is no depreciation charged at year end. Pole for the misconception.

Agree with the objectivity brought in by annual external audits...in unaudited accounts estimates such as depreciation, statutory reserves (insurance companies), asset valuations, bad debt provisions can depend what the preparers of the accounts want to achieve!

In the case of this bank... It was extra cautiousness...

This was in 3Q 2008 when the Global Financial Crisis was in full swing... Also the post-election effects were being felt... but by the time the 4Q came around (audits 1Q 2009) things seemed to have improved for them...

Of course, if they had known what was in store in 2Q & 3Q 2010... they might have kept the provisions!

Also... the KRA has an interest coz specific provisions can be used to reduce taxes (tax payable) by reducing profits...