depreciationdɪˌpri ʃiˈeɪ ʃən
depreciation (n)
- plural
- depreciations
depreciation
English Definitions:
depreciation (noun)
a decrease in price or value
"depreciation of the dollar against the yen"
depreciation, wear and tear (noun)
decrease in value of an asset due to obsolescence or use
disparagement, depreciation, derogation (noun)
a communication that belittles somebody or something
depreciation (Noun)
The state of being depreciated.
depreciation (Noun)
The decline in value of assets.
depreciation (Noun)
The measurement of the decline in value of assets. Not to be confused with impairment, which is the measurement of the unplanned, extraordinary decline in value of assets.
Depreciation
In accountancy, depreciation refers to two aspects of the same concept: ⁕the decrease in value of assets, and ⁕the allocation of the cost of assets to periods in which the assets are used. The former affects the balance sheet of a business or entity, and the latter affects the net income that they report. Generally the cost is allocated, as depreciation expense, among the periods in which the asset is expected to be used. This expense is recognized by businesses for financial reporting and tax purposes. Methods of computing depreciation, and the periods over which assets are depreciated, may vary between asset types within the same business. These may be specified by law or accounting standards, which may vary by country. There are several standard methods of computing depreciation expense, including fixed percentage, straight line, and declining balance methods. Depreciation expense generally begins when the asset is placed in service. For example, a depreciation expense of 100 per year for 5 years may be recognized for an asset costing 500.
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"depreciation." Kamus.net. STANDS4 LLC, 2024. Web. 18 Apr. 2024. <https://www.kamus.net/english/depreciation>.
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