- Depreciation is defined as a reduction in the value of an asset that occurs over time as the asset gets older or as wear and tear occurs, or the decline of one currency in relation to others.
- When your computer gets older and less valuable and useful because of its age and wear and tear, this is an example of depreciation.
- When the dollar declines in value in relation to the Euro, this is an example of depreciation.
- a decrease in value of property through wear, deterioration, or obsolescence
- the allowance made for this in bookkeeping, accounting, etc.
- ☆ a decrease in the purchasing power of money
- a making seem less important; disparagement
Origin of depreciationsee depreciate
- A decrease or loss in value, as because of age, wear, or market conditions.
- Accounting An allowance made for a loss in value of property.
- Reduction in the purchasing value of money.
- An instance of disparaging or belittlement.
(countable and uncountable, plural depreciations)
- The state of being depreciated.
- The decline in value of assets.
- (accounting) 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 - Investment & Finance Definition
The loss, over time, in the value of an asset such as plant, equipment, and vehicles. Depreciation accounts for the decline in the value of the asset as it ages. Several methods are used for calculating depreciation, including straight-line depreciation, accelerated depreciation, and the accelerated cost recovery system. See also straight-line depreciation method.
depreciation - Legal Definition