depreciation

Definitions

noun the loss of value of an asset over time, which is recorded in accounts as an expense

The allocation of a part of the cost of a property, plant, or equipment item (that has a limited useful life) over its estimated useful life.

noun loss of value of a currency when compared to other currencies
noun the writing down of the capital value of an asset over a period of time in a company’s accounts. Various methods of depreciating assets are used, such as the straight line method, where the asset is depreciated at a constant percentage of its cost each year, and the reducing balance method, where the asset is depreciated at a constant percentage which is applied to the cost of the asset after each of the previous years’ depreciation has been deducted.

(written as Depreciation)
The change in the value of a capital good over time, usually expressed annually. The value will typically fall due to wear and tear, superses sion by other capital items, or through changes in fashion. When the value rises, the term is appreciation. The values in question are in constant prices: allowance for inflation is a separate matter.

6 definitions in context