From www.accountingtoday.com: Meta Platforms Inc. adjusted its accounting policy by extending the useful life of certain AI infrastructure servers and networking assets to five and a half years, projecting a $2.9 billion reduction in depreciation expenses for 2025.
This change, revealed in January, significantly impacts earnings since the company plans to increase capital expenditures for AI by 75% this year.
Other tech companies, like Microsoft and Oracle, have similarly modified their depreciation timelines, while Amazon opted to shorten its equipment lifespan.