The simple way to look at it is,
Feb 08 2014 11:43 PM
1.The money that Nokia spent on the plant is 100 million with a forecast that it will generate revenue for the next 5 years.
2. Since Nokia is going to receive revenue from the plant for the next 5 years, the expense on it too is spread out for the next 5 years for accounting and tax purposes,
3. Assuming that the depreciation is steady and consistent, the method of spreading the depreciation over the next 5yrs is to divide the initial expense of 100 million with 5 years i.e; 100/5 = 20million or 2crores.