Which financial statement primarily records the Depreciation Charge?

The primary financial statement that records the depreciation charge is the Income Statement. The Income Statement reflects the company's revenues and expenses over a specific period, and depreciation is considered an expense. It captures the allocation of the cost of tangible fixed assets over their useful lives, representing the wear and tear on these assets. By including depreciation as an expense, the Income Statement provides a more accurate picture of a company's profitability by reducing the net income by the depreciation amount.

While the other statements also have relevance in financial reporting, they do not focus specifically on recording operational expenses like depreciation. The Balance Sheet presents the company's financial position at a specific point in time, listing assets, liabilities, and equity, without detailing operational expenses directly. The Cash Flow Statement provides insights into cash inflows and outflows, and while it may adjust net income by adding back non-cash expenses like depreciation to indicate cash flow from operating activities, it does not record depreciation itself. The Statement of Changes in Equity primarily shows changes in equity accounts, and again does not directly record depreciation expenses.