Has Economic Depreciation been thrown off the syllabus?

Quick outline here


I have come across one or two questions involving this calculation yet there is no mention of it in the CFAI books.

Have they removed it from the material?

It’s in the Residual Income Reading for calculating Economic Value Added (near the end of the reading)

I thought economic depreciation was related to Economic Income, not EVA?

Can you give me the page number. I’ve gone through it so often and cannot find it!

it is in corporate finance - as part of economic income… it is the change in market value…ie,

cashflow - economic depreciation

or cashflow+ change in market value

someone confirm please?


The equation is correct … But the definition of economic depreciation is: the reduction in market value

Economic Depreciation = - (change in market value)

it’s the change in the market value, which is a negative value.