The loss in value of an asset due to its use and/or the passage of time. The annual depreciation charge in accounts represents the amount of capital assets used up in the accounting period. It is charged in the cost accounts to ensure that the cost of capital equipment is reflected in the unit costs of the services provided using the equipment. There are various methods of calculating depreciation for the period, but the Treasury usually recommends the use of current cost asset valuation as the basis for the depreciation charge.
(1) Reduction in the book or market value of an asset. (2) Portion of an investment that can be deducted from taxable income. Finance By Example (Archives): Accounting vs. Economic Depreciation: AOL
In real estate investing, a tax deduction based upon the original cost of a building and used to reflect its declining economic life.
A charge against a fixed asset that writes off the cost of that asset over its useful life. The depreciation amount is entered as an expense in your income statement and is a non-cash expense.
In accounting, the practice of deducting annually a specified amount or percentage from the value of equipment and machinery representative of the deterioration suffered by the equipment or machinery during the year. The deduction reduces the amount of profit reported but is not an actual out-of-pocket expense.
A reduction in a fixed asset's value over time.
The reduction in value of an asset through use, wear and tear or obsolescence, or the allocation of this cost over the depreciable life of the asset.
An asset used in a business on an ongoing basis retains a residual value. However, this value will reduce over the lifespan of the asset. This reduction in value is the depreciation and can be claimed as a deduction from business profits. Depreciation is claimed in accounts as Capital Allowances.
A non-cash expense of doing business (such as recording that assets are going down in value over time.)
Reduction in the value of assets using specific models and rules; there are book and tax depreciation methods (16.1).
The opposite of appreciation, depreciation is the loss of value over time. Depreciation is most sudden in new cars, whose value drops sharply the moment they are driven off the showroom lot. That results in buyers being upside down in their loans, owing more than they are worth.
The annual deduction allowed to recover the cost of business property with a useful life of more than one year, such as machinery and equipment. The deduction does not apply to stock in trade, inventories, land, or personal assets and is reported as an expense that when subtracted from revenue, reduces the company's taxable income.
The apportionment of the cost of a long-term asset over some specified period of time for the purpose of financial reporting or taxes.
Assumption that as property ages, it loses value. Depreciation is used as a tax deduction on business or investment property. Different types of property are allowed different amounts of depreciation each year, called the depreciation schedule. If a property is depreciated to a value below it's actual market value, depreciation recapture tax will be due on the difference. Depreciation recapture tax is 25%.
The decrease in value due to wear and tear, the amount deducted from the replacement value of a property or item.
The process of cost allocation that assigns the original cost of plant and equipment to the periods benefited.
Depreciation is an automobile gradually loses its value.
Three basic types of depreciation are 1. normal from wear and tear of improvements; 2. functional obsolescence from non-typical function of various components of the home and site improvement inside of the property lines; and 3. economic obsolescence generated from a source outside of the property lines that adversely impact the value of the site and home improvements.
the lessening of the value of real and personal property due to age, wear and tear, etc.
The decrease in the value of an asset allowed when computing property value for tax purposes. In appraising, a loss in the value of a property improvement from any cause. Depreciation is curable when it can be remedied by repair or an addition to the property, and incurable when there is no easy or economic remedy.
Loss of value in real property due to age, physical deterioration, etc.
A reduction in the value of an asset used in a business on an ongoing basis. It can be claimed as a deduction from business profits. Depreciation is claimed in accounts as Capital Allowances.
A decline in value of a building or other real estate improvement resulting from age, physical wear and economic or functional obsolescence. This figure is deducted annually from net income.
The difference between the cost or value of an asset and its residual value allocated over the series of accounting periods in the asset's useful life. The depreciation expense for a period is usually based on: (i) the likely useful economic life of the asset; (ii) the pattern of reduction in services during life; and (iii) its likely residual (or salvage) value on disposal at the end of its life.
(1) In financial markets, the decrease in the value of an asset due either to real factors (i.e. the worsening of its revenue prospects) or often simply to fear.(2) In accounting, the amount allocated each period to Amortize the book value of fixed assets.(3) On the foreign exchange markets, the decrease in the market value of a currency, where this decrease has taken place without any intervention by the country's monetary authorities. Compare with Devaluation. Français: Dépréciation Español: Depreciación, amortización
includes non-cash charges for obsolescence, wear on property, current portion of capitalized expenses (intangibles) and depletion charges.
Return of investment through inclusion in cost of service (and rates) of a pro rata part of the cost of property, calculated to spread the total investment cost over a certain period of time or number of units that measure the useful life of the investment. Depreciation (in the Code of Federal Regulations) is to reimburse the company for "...the loss in service value not restored by current maintenance, incurred in connection with the consumption or prospective retirement of gas plant in the course of service from causes which are known to be in current operation and against which the utility is not protected by insurance. Among the causes to be given consideration are wear and tear, decay, action of the elements, inadequacy, obsolescence, changes in the art, changes in demand and requirements of public authorities, and, in the case of a natural gas company, the exhaustion of natural resources."
The loss in value from all causes to property, after construction or purchase.
Amounts charged to the profit and loss account to reflect the wearing out of a fixed asse t over its useful life. For example, if a company buys a car for #10,000 with an expected useful life of four years, it will charge the #10,000 cost to profit and loss account over a four year period. The simplest way to do this is to charge #2,500 expense per year (straight line depreciation). The purpose of depreciation is to comply with the accruals concept. Since the benefit of the car is received over a four year period, the cost of acquiring the car is charged against profits over a four year period.
A deduction for a portion of the cost of a fixed asset presented as an expense in the income statement (profit and loss statement) for the current accounting period, such as for the current year. It allows the cost of the asset to be written off over its useful life.
The decrease in value of any property due to wear, tear, and/or time. Generally this is not an insurable loss.
The concept that the cost of capital equipment should be written off over its useful life and not during the year in which the cost incurred.
The reduction of value of an asset of a set period of time due to deterioration, obsolescence or normal wear and tear.
A measure of the wearing out, consumption or other reduction in the useful economic life of a fixed asset, whether arising from use, effluxion of time or obsolescence through technological or market changes (FRS 11 and FRS 15). Depreciation should be allocated so as to charge a fair proportion of the total cost (or valuation) of the asset to each accounting period expected to benefit from its use.
The systematic allocation of the cost of an asset from the balance sheet to Depreciation Expense on the income statement over the useful life of the asset. (The depreciation journal entry includes a debit to Depreciation Expense and a credit to Accumulated Depreciation, a contra asset account). The purpose is to allocate the cost to expense in order to comply with the matching principle. It is not intended to be a valuation process. In other words, the amount allocated to expense is not indicative of the economic value being consumed. Similarly, the amount not yet allocated is not an indication of its current market value. To learn more, see Explanation of Depreciation To Top
Decrease in the value of equipment over time. Depreciation of equipment used for business is a tax-deductible expense.
Allocation of cost of a fixed asset to expense over its working life. Measure of the cost of using the fixed asset in each accounting period. Reduces profit available for dividend. Land is not depreciated.
Fixed assets like property, plant and equipment require an immediate expenditure. But since these assets are productive and will generate income over a period of their useful economic life, the expenditures are capitalized (recorded as an asset) and expensed (depreciated) over a period consistent with their life.
The loss of value in a plant or structure during a course of years as measured by the difference between its first cost and its salvage value at the end of the allotted time.
Loss in real estate value from any cause
This is the decline in value of a vehicle over the term of a financing contract or lease.
Decrease in the value or price of a thing, either in relation to what it was before or in comparison with others of its kind.
The process of spreading the cost of acquiring a fixed asset over its useful economic life.
The periodic write down of an asset to reflect its loss of value through age and use.
The portion of the cost of a capital asset representing the expiration in the useful life of the capital asset attributable to wear and tear, deterioration, action of the physical elements, inadequacy, and obsolescence which is charged off during a particular period. In accounting for depreciation, the cost of a capital asset, less any salvage value, is prorated over the estimated useful life of such an asset. Refer to COMPOSITE METHOD and STRAIGHT-LINE METHOD.
The accounting practice where the cost of a fixed asset of a business is spread over the life of the asset. Depreciation is a non-cash expense which allows the money to be retained by the business, thus technically allowing the business the capacity to replace the asset over time.
A gain in the market price of an investment from the time you purchase it to the time you sell it is capital appreciation. A decrease in the market price is capital depreciation.
The process of expensing the value of a business asset over its useful life.
A decline in the value of a currency relative to another currency.
A charge against earnings that does not involve a cash payment for the writeoff of the cost of an asset less salvage value over its estimated useful life. A variety of depreciation methods have been developed to specify the rate and amount of the writeoff for each fiscal period.
Loss in value occasioned by ordinary wear and tear, destructive action of the elements, or functional or economic obsolescence.
Decrease in value to real estate property.
A system under which a business or individual can deduct part of the cost of an asset for each year of the asset’s "life".
The wear and tear you inflict on the car while it is in your possession. Mathematically, it is the difference between the capitalized cost and the car's value at the end of the lease.
A reduction or decline in the vehicle value over the lease term caused by condition, age and mileage.
Deduction for the wear and tear of an item used for business.
All assets except land depreciate in value at whatever rate the Inland Revenue says they do. The Balance Sheet reflects these values.
A means for a company to recover the cost of its purchased assets, over time, through periodic deductions or offsets to income.
Total amount charged to cover the vehicle's projected decline in value through normal use during the lease term as well as other items that are paid for over the lease term. It is calculated as the difference between the adjusted capitalized cost and vehicle's residual value. This amount is a major part of your base monthly payment.
Physical wear and tear or technological or economic obsolescence.
For tax purposes, depreciation is an expense deduction taken for an investment in depreciable property.
A loss in value due to any cause; any condition which adversely affects the value of an improvement.
A charge against earnings over an extended period of time to recognize that a tangible asset such as a building or truck is losing value as it wears out. The implication is that the asset will eventually have to be replaced, and this will cost money. Depreciation does not actually use cash in the period in which it is charged.
A decline in the value of a house due to a change in the conditions of the market, decline of the neighbourhood or lack of upkeep/wear and tear on a home.
A reduction in the value of an asset. Most cars begin to depreciate the moment they are sold. Some depreciate much faster than others.
is the portion of the capital stock that wears out each year.
The decline in value of a fixed asset due to wear, destruction or obsolescence.
Decline in value of a house due to wear and tear, or changes to a neighborhood.
Decline in value of business facilities and capital goods owing to the predictable wear and tear over their operating lives, often amortized for tax purposes over a prescribed number of years. See also “amortization.
Depreciation is a reduction in the value of property, such as stock or real estate.
The increase or decrease in the value of the individual's investment in the property.
The systematic and rational allocation of the acquisition cost of an asset, less its estimated salvage or residual value, over its estimated useful life.
Loss of value in any asset brought about by age, physical deterioration or functional or economic obsolescence.
An expense recognised systematically for the purpose of allocating the depreciable amount of a depreciable asset over its useful life.
The fall in the value of capital or the value of a durable good resulting from its use and from obsolescence due to the passage of time.
When a property loses value as a result of age, deterioration or obsolescence.
The systematic assignment of the cost of tangible assets to expense.
the portion of the capital investment that can be deducted from taxable income over the useful life of the investment.
The process of allocating the cost of a fixed asset over its estimated useful life.
Loss of value of assets through wear and tear.
1.) Expiration in the service life of capital asset attributable to wear and tear, deterioration, action of the physical elements, inadequacy obsolescence. 2.) That portion of the cost of a capital asset which is charged as an expense during a particular period.
1. An accounting technique by which management gradually recovers the cost of expensive fixed assets over the course of their expected lives; 2. The decrease in usefulness of plant assets.
shrinkage in the value of fixed assets, recognized by the periodic allocation of the original cost of the asset in current operations. It is merely a method of systematically allocating the original cost over the asset’s useful life due to deterioration or obsolescence. In other words, it is a systematic process by which the original cost of a long-term asset, such as a building, is reduced and carried on the union's books at a lesser figure.
The expending of capital assets over the useful life of the asset. If the asset is intangible (rather than a tangible fixed asset), the process of expending over the useful life is called amortization.
The recognition of part of an asset's cost as an expense during each year of its useful life. There are several acceptable methods for calculating this expense, including straight-line depreciation and various accelerated methods. See also double-declining balance, straight-line method, and sum of the years' digits.
A reduction in the value of fixed assets. The most important causes of depreciation are wear and tear, the effect of the elements, and gradual obsolescence which makes it unprofitable to continue using some assets until they have been exhausted. The purpose of the bookkeeping charge for depreciation is to write off the original cost of an asset (less expected salvage value) by equitably distributing charges against operations over its entire useful life.
A decline in the value of a property or an asset.
an annual tax deduction for wear and tear and loss of utility of property. Example: Tax depreciation allows a tax deduction without a cash payment, thus providing an important benefit to real estate investors. A tax depreciation deduction may be claimed even when the propertyâ€(tm)s market value increases. The annual tax depreciation deduction allowed for improvements (land is not depreciable) is 3.64% for rental housing and 2.56% for commercial and industrial property.
A federal tax deduction taken by a consumer in conjunction with the life span of a house, automobile, or business equipment.
The loss in value to property due to wear and tear, obsolescence, or economic factors. To offset depreciation loss, tax laws permit recovery of the cost of an investment through annual deductions from taxable income.
The value of the property decreases
A decline in the value of a currency in terms of a foreign currency.
A decline in the investment's value.
The systematic method of ratably deducting the cost of tangible property having a useful life or more than one year, used in a trade or business or held for the production of income, over its assumed useful life. Currently, the IRS requires use of the modified accelerated cost recovery (MACRS) system for this purpose.
A reasonable "allowance" for wear and tear and obsolescence of equipment used in a trade or business; allows the "owner" of the equipment (often the lessor rather than the end user for leased equipment) to "recover" the cost of equipment over its useful life through annual tax benefits (listed in financial statements as "book depreciation").
A ratable deduction allowed over a number of years to recover your basis in property that is used for more than one year for business or income-producing purposes.
The decrease in the value of any type of tangible property over a period of time resulting from use, wear and tear, or obsolescence.
A decline in the value of the property.
The value lost as the vehicle ages. Depreciation is usually rapid in the early years of the vehicle's life and can be greater or less than the average because of mileage and wear and tear.
The amount by which assets have reduced in value over a period of time, the depreciation of assets is shown in the balance sheets
is the decrease in value of a thing due to age, wear and tear, decay or decline.
A method of accounting where the cost of an asset is spread out over the life of that asset.
A noncash expense on a company's income statement that is intended to reflect an eroding value for physical assets such as buildings and equipment.
The process of an investment declining in value over time.
The accounting procedure which allocates the cost of a fixed asset over its useful life.
The decrease in value of a vehicle or its parts due to wear, tear and age.
Allowance made in valuations and estimates for normal wear and tear.
literally a fall in value. The term also refers to a write-off for tax purposes using various accounting methods allowed by the IRS.
Provision by which, for example, a business that invests $1 million buying a new machine is not allowed to fully deduct that cost when calculating its taxable income. Instead, it may deduct only a portion of the cost each year. Depreciation is complex, and it increases the tax burden on investment.
As most assets are used or age their value decreases that is the basis of depreciation.
An accounting concept which allocates the cost of a fixed asset as an expense over the expected useful life of the asset.
The decline in value over time of capital investments in facilities and equipment
The charge for assets used in production Depreciation is not a cash outlay.
The amount allocated each year to amortize an asset over its useful life. An estimate of how much an asset has been used in a given year.
loss in value. A vehicle, or a part of a vehicle such as a battery, loses value as it ages, especially in the first few years after it is bought.
Depreciation is the decrease in the value, over time, of a long-term asset. It is measured using a depreciation schedule.
The loss of value of assets, such as buildings and transmission lines, due to age and wear. Among the factors considered in determining depreciation are wear and tear, decay, action of the elements, inadequacy, obsolescence, changes in the technology, changes in demand, requirements of public authorities and salvage value. Depreciation is charged to utility customers as an annual expense.
A decline in the value of property over time.
The cost of wear and obsolescence associated with implements, machinery and structures over time. It is usually calculated on an annual basis. If the cost of depreciation is thought to be relatively constant in each period (year) (e.g. as in the case of buildings), it is calculated by the "straight-line method" as
A lowering of value based on physical deterioration or functional or economic obsolescence.
The recovery of capital used to construct or acquire utility assets. The amount of this expense is determined by the decline of the service value of utility assets over time due to wear, tear, deterioration or technological advances.
A change in the purchasing power of a currency.
The periodic allocation of the cost of physical assets, representing the amount of the asset consumed during a particular period of time.
Decline in the value of real property due to wear and tear, obsolescence, or adverse change in the neighborhood.
In the cost approach to value, this is the amount of depreciation, from any and all sources, that affects the value of the property in question. Assessors determine what depreciation can be applied to your property following schedules and regulations contained in the Saskatchewan Assessment Manual.
Decrease in the value of property over a period of time because of use, wear and tear or obsolescence.
The decrease in value of an item over a period of time. Depreciation determines the 'actual cash value' of property.
Method of allocating the cost of an asset over the expected usable life of the asset.
Depreciation is the reduction of value over time of the property.
Periodic wearing away of property over the propertyâ€(tm)s economic life. The I.R.S. requires investors and business owners to take a tax deduction on the amount of a propertyâ€(tm)s depreciation. The practice of amortizing or spreading the cost of depreciable property over a specified period of time, usually its estimated depreciable life. To put it another way, you are allowed a deduction on your income tax return for the wearing away and expensing over time of property or assets, such as aircraft, vehicles, livestock and buildings. A depreciable asset is a capital expenditure in depreciable property; used in a trade or business or held for the production of income and has a definite useful life of more than one year. Non-depreciable property includes vacant land. For assets that have an expected useful life of more than one year, you spread the cost of the asset over its estimated useful life rather than deducting the entire cost in the year you place the asset in service. The tax code (law) specifies the depreciation period for specific types of assets.
Loss of value of a vehicle due to age and mileage, as well as physical condition.
A tax deduction representing a reasonable allowance for exhaustion, wear and tear, and obsolescence, that is taken by the owner of the equipment and by which the cost of the equipment is allocated over time. Depreciation decreases the company's balance sheet assets and is also recorded as an operating expense for each period.
Decline in an asset's value or useful life, due to wear, tear, action of the elements or obsolescence.
The gradual expensing of fixed assets such as property, plant and equipment.
An accounting term t refers to the reduction in the value of physical assets, such as manufacturing plants and equipment, through periodic reductions in income.
A calculation for wear and tear on the company's plant and equipment; this figure can be manipulated, e.g. when a company cuts the number of years that it expects equipment to last, the depreciation figurebecomes higher, and this reduces profits.
Charges made against income to provide for distributing the cost of depreciable plant less estimated net salvage over the estimated useful life of the asset in such a way as to allocate it as equitably as possible to the period during which such services are obtained from the use of the facilities. Among the factors to consider are: wear and tear, decay, inadequacy, obsolescence, changes in demand and requirements of public authorities.
A sum representing presumed loss in the value of a building or other improvements to a parcel of real estate resulting from age, physical wear, and economic or functional obsolescence.
Depreciation is the loss or reduction in value of a specific item due to erosion or degradation, or disfavor.
The diminution through time of the value of a fixed asset. In other words, an allowance for things wearing out. There is normally a charge in the profit and loss account to account for this. It is purely an accounting feature and has no effect on the cash flow. In a steady state the capital expenditure of a company will normally equate to the depreciation charge.
with reference to property, the process of being worn out or becoming obsolete. Certain types of property qualify for depreciation deductions, also known as capital cost allowances (CCA).
Is the charge against revenues which represents a prorated capitalization of the cost of an asset. For example, if a computer is expected to have a useful life of 5 years and cost $6,000 with no salvage value, then the annual, straight-line depreciation would be $1,200 per year. If the same computer had an estimated salvage or residual value of $500, then the annual depreciation would be $1,100 ($6,000 - 500 = $5,500 divided by 5 years).
The reduced value of a car after you buy it. A brand new car can lose or "depreciate" between several hundred and several thousand dollars in value the minute you drive off the dealer's lot.
A decrease in the value of property over a period of time resulting from use, obsolescence, or wear and tear.
The loss of an asset's value over time.
The allocation of the cost of a fixed asset over a period of time.
The decrease in value to equipment, assets, or other property.
The decrease in home or property value due to age or wear and tear after the property was built or purchased.
The writing-down of the cost of an asset over its estimated life.
A way of spreading the cost of a Fixed Asset over a number of years. Every year, a proportion of the original cost is charged from the Balance Sheet to the Income and Expenditure Account.
A loss of value in real property brought about by age, physical deterioration, functional or economic obsolescence.
The act of lowering an item´s value due to use or wear and tear.
the accounting process by which the wastage of a fixed asset with a limited useful life is progressively brought into account by periodic charges against revenue.
the capital costs of an asset which are allocated to an accounting period.
As property ages and becomes worn it often loses value. That loss of value must be taken into account in any adjustment of property insurance that covers loss of actual cash value.
Accounting process of allocating in a systematic manner the cost or other basic value of a tangible, long-lived asset or group of assets over the useful life of the asset. See Amortization.
An accounting method to take into account an asset's physical deterioration. It allocates the asset's cost over its useful life.
The sum to which the value of a fixed asset has decreased in any period. Depreciation is calculated according to the value of the asset, the period in which it is depreciated and the method of depreciation, it is a non-cash expense.
A constant use of your property (such as home or car) leads to some wear and tear and it looses its price value or there is a decrease in its value .
the value that your car loses over a period of time.
An allocation made, as an expense, of the cost or other value of an asset, in each financial reporting period over the life of the asset. The standard meaning of the term, consistent with cost-based asset 'valuation', is the allocation of the cost of the asset over time. (Advocates of 'economic' valuation (see below) substitute for this the alternative concept of depreciation as the reduction in each time period of the economic value of the asset.)
The loss in value of an asset as it is used. This is measured as the difference between the original purchase price and how much it is sold for at the end of contract.
The decrease in the value of capital that results from its use or from the passage of time.
a charge against the reproduction cost (new) of an asset for the estimated wear and obsolescence. Depreciation may be physical, functional or environmental.
The reduction in value of a vehicle caused by age, mileage and condition.
Refers to either the increase (appreciation) or the decrease (depreciation) in a home's value.
The decline in value of property from any cause - such as use, wear-and-tear, obsolescence, etc. Depreciation is taken into account when arriving at the proper amount to be insured, or the amount of loss to be paid, unless the insurance is on a valued or replacement cost basis.
Decline in property value due to obsolescence, age, natural wear, or any other conditions.
Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence, or the passage of time.
A portion of the original cost of fixed assets charged to a particular income period as a cost of doing business.
The lowering in the value of property caused by age, obsolescence, and other factors that affect the actual cash value.
The decreasing value of an asset e.g: house ,car, motorcycle etc.
this term actually has three meanings: 1) the disparity between the cost of replacing a property and the market value of the property, as determined by an appraisal.2) the yearly right of part of an asset made during accounting procedures.3) the reduction in property value, usually occurring over some time.Depreciation may result from neglect of a property, sudden changes in a neighborhood, and property damage.
A decline in the value of property; the opposite of appreciation.
an expense that is supposed to reflect the loss in value of a fixed asset. For example, if a machine will completely wear out after ten year's use, the cost of the machine is charged as an expense over the ten-year life rather than all at once, when the machine is purchased. Straight line depreciation charges the same amount to expense each year. Accelerated depreciation charges more to expense in early years, less in later years. Depreciation is an accounting expense. In real life, the fixed asset may grow in value or it may become worthless long before the depreciation period ends.
An estimate of the value of capital goods that wear out or become obsolete over a period of time.
A decrease in value due to age, wear and tear, or obsolescence.
The amount the vehicle declines in value over the term of the lease or the difference between the capitalized cost and residual value.
Depreciation is the decline in an object's value due to age, wear and tear, or obsolescence. | Back
The amount by which a vehicle is expected to decrease in value over a specific period of time.
A fall in the value of a currency with a variable exchange rate.
A decrease in the value or price of a property due to changes in market conditions, wear and tear on the property, or other factors.
A fall in the value of a currency due to market forces rather than due to official action.
The systematic allocation of the acquisition cost of long-lived or fixed assets to the expense accounts of particular periods that benefit from the use of the assets.
Depreciation is a provision made by companies to allow for wear and tear of assets. Companies are allowed to deduct depreciation from their profits before they are assessed for tax. Since depreciation is charged against profits but the money is not paid out to anyone it is usually added back to after-tax profits to calculate a company's cash flow.
The value an asset loses due to wear and tear or time.
An exchange rate changes when one unit of the base currency buys more or less units of the quoted currency. So if the USD/JPY rate changes from 112.85 to 113.14, one USD buys more yen. The dollar has strengthened or appreciated against the yen. If the USD/JPY rate changes from 112.85 to 112.42, one USD buys less yen. The dollar has weakened or depreciated against the yen.
share capital (GB) - capital stock (US)
The process whereby the cost of a capitalized item is allocated across the years of its useful life. See also capitalization.
The amount of "wear and tear" on a piece of equipment or a building. Usually, this amount is spread out equally over a fixed time span. Buildings usually depreciate equally over 27.5 years; furnaces over 15 years; carpeting over 7; that is, each year the building is worth 1/27.5 less; the furnace 1/15 less and the carpeting 1/7 less. The IRS lets you deduct these amounts each year from the co-op's earned income. (Note: Land does not depreciate.)
An estimation of the loss of value of assets over time. Cars for example, tend to rapidly depreciate following purchase.
Wear & deterioration on equipment and fixed assets. A normal expense of doing business.
The amount that an item, such as a car, or real estate can go down in value over time. Typically causes for real estate depreciation are wear and tear on the property or a change in the neighborhood.
A loss in the value of property over the time the property is being used. Events that can cause property to depreciate include wear and tear, age, deterioration, and obsolescence. You can get back your cost of certain property, such as equipment you use in your business or property used for the production of income, by taking deductions for depreciation.
The amount by which an asset falls in value within a given period (i.e. a financial year), also called actual depreciation. Accounting depreciation can differ to actual depreciation. Assets owned by a business (e.g. cars, machinery etc.) are depreciated each year over their useful life until their value is zero in the business' balance sheet. The amount of accounting depreciation, also called the "charge for depreciation" can be used to reduce taxable profits, thereby reducing a company's tax bill.
An accounting procedure that spreads the asset’s purchase cost over its depreciable life. (For example, a fixed asset that cost $10,000 and lasted 10 years could be depreciated by $1,000 per year for 10 years. For accounting purposes, this reduces its value by $1,000 each year until, at the end of its “useful lifeâ€, it is worth nothing.) Depreciation reduces taxable income but does not reduce cash.
In taxation, a deduction taken to account for the decline in value of assets, such as machines used in a business, over a period of time. Used to offset the cost of acquiring the asset. See also expensing.
This reflects the depreciation for all capital goods.
Decrease in the value of an investment over time.
Also called obsolescence. In the real estate industry, it is a loss in value due to any cause and consists of 3 components: · Physical: actual material wear and tear.· Functional: out dated or substandard design, layout, technology, etc.· External (aka economic): negative influences beyond a propertyâ€(tm)s borders. Depreciation may be curable (where the value gained is greater than the cost to repair) or incurable (where the cost to repair exceeds the value gained).
The actual or accounting recognition of the decrease in value of your hard assets over a period of time.
Accounting term which allows for the loss of value of a company's assets.
The decreased value of an item based on its condition, market value, and age.
The reduction in the value of a property caused by changes in market conditions (eg: the slowing down of the housing market). In extreme cases, this can result in ‘negative equityâ€(tm) where the value of the proprerty is less than the value of the mortgage secured upon it
The value that an asset loses over a period of time.
Decline in the price of a piece of property due to economic trends, wear and tear of the property, and popularity of the location of the property such as proximity to beach that is eroding.
A decline in an investment's value.
The decrease in the value of your property due to age or wear and tear.
An allowable tax deduction which reflects the "using up" of the service life of equipment.
Loss of value due to all causes. Depreciation includes (1) physical deterioration, ordinary wear and tear, (2) functional depreciation and (3) economic obsolescence, causes outside the property.
A decrease in value to real property improvements caused by age, deterioration or functional obsolescence.
the decrease in an asset's value over time; for capital, it is the amount by which physical capital wears out over a given period of time.
An allowance made for loss in value of a fixed asset because of wear or age. The cost of the fixed asset is allocated over its estimated useful life, using the straight-line method. The estimated useful lives of fixed assets such as plants, rental machines, and other properties generally are as follows: buildings, 50 years; building equipment, 20 years; land improvements, 20 years; plant, laboratory, and office equipment, 2 to 15 years; and computer equipment, 1.5 to 5 years. Listed in the assets category on the statement of financial position.
A decline in the value of a house due to changing market conditions, decline of a neighborhood or lack of upkeep on a home.
The method for recovering the cost of a capital asset (building, equipment, etc.). The annual depreciation amount is calculated by dividing the cost of the asset by the number of years of its useful life. OMB Circular A-21 specifies that for F&A cost calculations, assets are to be depreciated using the "straight line" method, and any federal funds used to purchase the asset must be deducted from the cost prior to the calculation. (See also GIM 22A)
The decreasing in the value of any asset over a period of time.
A decrease in value through age, wear or deterioration. Depreciation is a normal expense of doing business that must be taken into account. There are laws and regulations governing the manner and time periods that may be used for depreciation.
An expense which results from the process of allocating the cost of certain long-lived assets to the periods of benefit.
As used in appraisal, loss in value due to any cause. As used in taxation, a capital cost recovery out of income.
The cost of an asset divided by its useful life, recorded as an expense. The IRS provides guidelines for "useful life" of most assets as well as what must be considered an asset.
the loss in property value from all causes. Three causes of depreciation are economic obsolescence, functional obsolescence and economic physical deterioration.
A decrease in the value of property that occurs over time.
An allowance made for loss in value of a fixed asset because of wear or age. The cost of the fixed asset is allocated over its estimated useful life, using either the straight-line method or the written down value method. Listed in the assets category on the balance sheet.
The loss of value in real estate (property).
The decline in value of a property due to the physical deterioration, age, functional or economic obsolescence. (Tip – If used for a business, many people may use a portion of their home as a home office, and depreciate their home’s value to save money for tax purposes. Always consult an accountant before making such decisions.)
An allowance for wear or age made to the value of a fixed asset, allocating its cost over its estimated useful life. Listed in the assets category on the statement of financial position. See also book value.
Decline in value of a house due to wear and tear, adverse changes in the neighborhood, or any other reason.
The portion of the cost of a tangible long-term asset allocated to any one accounting period. Also called depreciation expense.
a decrease in the original value of an item because of wear and tear, obsolescence, and deterioration
The amount the vehicle declines in value over the term of the lease. The depreciation may be calculated by subtracting the residual value from the adjusted capitalized cost. Using this method, the depreciation amount will also include any amounts that were added by agreement to the price of the vehicle to arrive at the gross capitalized cost. If you have a loan, the same principle applies as stated above except it relates to the declining loan balance after payments are applied. Further, the depreciated value is based on a number of factors including, but not limited to, mileage, condition and resale market conditions, among other factors.
The loss of value of a property brought on by age, deterioration, and other factors.
An overall loss on a property due to age, physical deterioration and economic factors.
A decline in the value of a property. Can be listed as an expense to reduce taxable income; because no money is actually paid, lenders will count it as income for self-employed borrowers.
A bookkeeping entry that does not require cash outlay nor funds to be earmarked. The entry is a charge against earnings to write off the cost of an asset over its assessed useful life over a set time period. It reduces taxable income but does not reduce cash. The most commonly used depreciation methods are Straight-line Depreciation and Accelerated Cost Recovery System (ACRS).
The value that the vehicle loses during the lease term. It is the difference between the vehicle's capitalized cost and the vehicle's value when the lease expires (residual value).
Method of distributing the original cost of a fixed asset over its useful life.
The decrease in value of tangible property (without loss of property) due to cause s such as wear, tear, age, and obsolescence. [D02650] PMDT A charge to current operation s which distributes the cost of a tangible capital asset, less estimate residual value, over the estimate d useful life of the asset in a system atic and logic al manner. It does not involve a process of valuation. [D03492] GAT
The charge against the income statement which spreads the cost of a tangible asset, e.g., machinery, over its expected useful life.
Spreading out the cost of a capital asset over its estimated useful life or a decrease in the usefulness, and therefore value, of real property improvements or other assets caused by deterioration or obsolescence.
An estimate of the proportion of the fixed cost of an asset which has been consumed (either through usage or passage of time) during the accounting period.
An allocation of the original value of an asset against current income to represent the declining value of the asset as a cost of that time period. Depreciation does not involve a cash payment. It acts as a tax shield and thereby reduces the tax payment. See: capital recovery, depletion, double-declining-balance depreciation, straight line depreciation, units-of-production depreciation.
The value of assets usually decreases as time goes by. The amount or percentage it decreases by is called depreciation. This is normally calculated at the end of every accounting period (usually a year) at a typical rate of 25% of its last value. It is shown in both the profit & loss account and balance sheet of a business. See straight-line depreciation .
Systematic charges against earnings to write off the cost of an asset over its estimated useful life because of wear and tear through use, action of the elements, or obsolescence.
An allowance acknowledging the fact that your business assets eventually wear out or decrease in value, even though you routinely maintain or repair them.
Periodic charges to an asset, as an expense to the business, over the estimated lifetime of the asset. Also known as Amortization.
A vehicle's decline in value as it gets older. In an auto lease, a charge for depreciation is added to the consumer's monthly payment.
The decrease in the value of property due to wear and tear, and age.
A decline in the value of property due to wear and tear, adverse changes in a neighborhood, or any other reason.
Depreciation recognizes the allocation of cost of depreciable physical plant, property, or equipment as an operating expense over the periods in which the assets are expected to provide benefit.
An accounting convention to spread out cost for equipment over the "life" of the asset, rather than in a single business year.
The decrease in the market value of a vehicle over time. The amount of yearly depreciation is influenced by car condition, supply and demand in the resale marketplace, and reputation of the manufacturer and model. Convertibles, autos with large engines, trucks, and vans tend to depreciate less than other vehicles.
Decreases in value to real property improvements caused by deterioration or loss in value.
A decrease in value (usually for tax purposes); a reduction or loss in exchange for value or purchasing power.
Income Tax deductions allowed by the Internal Revenue Code in recovering the cost of a tangible asset over time.
The calculated losses in value of an asset due to age, wear and tear, deterioration or obsolescence. Depreciation must be calculated according to your organisation's depreciation policy.
In accounting this refers to the process of allocating a portion of the original costs of a fixed asset to each accounting period so that the value is gradually used up (written off) during the course of the asset's estimated useful life.Çíîøåí³ñòü, àìîðòèçàö³ÿ áóõãàëòåðñüêîìó îáë³êó öåé òåðì³í îçíà÷ຠñïèñàííÿ ÷àñòèíè ïåðâèííî¿ âàðòîñò³ îñíîâíîãî êàï³òàëó â êîæíèé çâ³òíèé ïåð³îä òàêèì ÷èíîì, ùî â ê³íö³ ê³íö³â âñÿ âàðò³ñòü òîãî ÷è ³íøîãî îá'ºêòó îñíîâíîãî êàï³òàëó âèÿâëÿºòüñÿ ïîâí³ñòþ ñïèñàíîþ çà ÷àñ ñëóæáè.
1) The lessening of the value of a property over time. 2) A tax adjustment accounting for the reduction in value of an asset (a building or a piece of machinery) over time.
A decline in the value of property due to changes in market conditions or other clauses.
In appraising, a loss in property value from any cause. In regard to improvements, deterioration and obsolescence. In accounting, an allowance made against the loss in value of an asset for a defined purpose and computed using a specified method.
A loss in real property value, brought about by age, physical deterioration, or functional or economic obsolescence. Broadly, a loss in value from any cause.
A fall in the value of a country's currency on the exchange market, relative either to a particular other currency or to a weighted average of other currencies. The currency is said to depreciate. Opposite of " appreciation." The decline in value or usefulness of a piece of capital over time, and/or with use.
A loss or decline in property value due to any cause.
Appraisers usually refer to “depreciation ” as the actual loss in value due to physical wear and tear along with functional and economic obsolescence. (See Depreciation Allowance)
The decline in an asset's value due to wear and tear, aging, obsolescence, and exhaustion, usually taken as an annual tax deduction during ownership.
In accounting terms, the expensing of an asset over its estimated useful life on a systematic and rational basis. This expensing of an asset is usually related to its lost usefulness, expired utility, or diminution of services. Through this process the entire cost of an asset is ultimately charged off as an expense.
In the economic sense, depreciation is the physical wearing out or obsolescence of an asset. The loss in value of a capital asset over its economic life.
Reduction in market value of property.
The decrease in value due to wear and tear, decay, decline in price, e.g., a new car purchased at $20,000 depreciates to $5,000 in five years
loss in value to physical deterioration, functional obsolescence, or economic obsolescence.
Reduction of the value of real estate or other property. Vacation properties are not necessarily prone to depreciation, though they are likely to cost much less on the resale market than what the developer was able to charge for them initially.
1)Expiration in the service life of fixed assets, other than wasting assets, attributable to wear and tear, deterioration , action of the physical elements, inadequacy and obsolescence. 2)The portion of the cost of a fixed asset, other than a wasting asset, charged as an expense during a particular period. In accounting for depreciation, the cost of a fixed asset, less any salvage value, is prorated over the estimated service life of such an asset, and each period is charged with a portion of such cost. Through this process, the entire cost of the asset is ultimately charged off as an expense.
A decline in asset or property value.
a reduction in the value of capital goods over time due to their use in production
A form of tax deduction that permits the recovery of the cost of an asset over its useful life in the form of tax savings. It is a bookkeeping entry and does not represent a cash outlay. The simplest method is straight-line depreciation, which allocates a constant amount each year during an asset's life. For example, an asset with a useful life of 10 years and no salvage value would generate a deduction of 10% of its cost annually. Accelerated depreciation is a method that permits deduction of a greater percentage of the cost of an asset in the early years of the asset's useful life with smaller deductions in later years. Examples of accelerated depreciation are the double-declining balance and the sum of the years-digits method. A recent method put into use is the Accelerated Cost Recovery System (ACRS), which applies accelerated methods of cost recovery over statutory periods.
The allocation of costs over the depreciable life of an asset. Companies can use various forms of accepted accounting practices to amortize fixed assets over a certain time period.
A non-cash charge against profit representing the theoretical value of a fixed asset used up, or depleted, in a period, the systematic writing down each year of an asset with a limited economic life.
A decline in the value of property brought about by age, physical deterioration, functional or economic obsolescence, etc.
Distributing the cost of a major asset over the years in which it produces revenues; calculated by each year subtracting the asset's original value divided by the number of years in its productive life.
An increase or decrease in the value of an investment, such as a mutual fund portfolio of securities, compared to its original purchase price.
The financial equivalent of wear and tear. Businesses deduct a certain amount from profits to reflect the decline in value of plant and machinery.
The decrease in the capital stock resulting from wear and tear and obsolescence.
A decrease in the value of a currency in relation to the value of another.
A decrease in the value of an asset, such as buildings or equipment.
A method for determining the useful life of a piece of equipment and for costing its value over the years of its active use. The total depreciation expense is equal to the difference between the initial cost of the unit and its estimated residual or salvage value. When divided over the years of the equipment's usefulness, this periodic expense can be deducted from income taxes each year.
That component of an asset's useful life which has expired. Funding equivalent to the annual depreciation of each asset is provided to finance replacement of the fully depreciated asset.
Loss in value of a consumer good during its lifetime often associated with appliances and vehicles
The natural decline in property value due to market forces or depletion of resources.
Tefers to loss in value of real property. Timeshare properties do not depreciate per se; however, they seldom command a price in the resale market comparable to that originally paid in the developer's sales center.
Decrease in the value of one currency in terms of another, resulting from a decline in market demand.
A loss in value of an item or property because of wear and tear over time.
The loss of value of a security since its purchase.
Depreciation is the drop in value of an asset due to wear and tear, age and obsolescence (going out of date) as recorded in an organisation's financial records.
The loss of value of property over a period of time.
A charge against the Company's earnings that allocates the cost of property, plant and equipment over the estimated useful lives of the assets.
The decrease in the market value of a vehicle over time. The amount of yearly depreciation is affected by variables including car condition, resale market supply and demand, and reputation of the manufacturer and/or model.
The reduction in value of tangible property caused by physical deterioration or obsolescence.
The decreasing value of a house caused by damages to the house or other means.
The decrease in value of something because it is now worth less than when you bought it.
In accounting, the systematic cost allocation process used to record the decline over time in the usefulness of a company's tangible assets. In general, a decline in price or value.
The amount of expense charged against earnings by a company to write off the cost of a plant or machine over its useful live, giving consideration to wear and tear, obsolescence, and salvage value. If the expense is assumed to be incurred in equal amounts in each business period over the life of the asset, the depreciation method used is straight line (SL). If the expense is assumed to be incurred in decreasing amounts in each business period over the life of the asset, the method used is said to be accelerated. Two commonly used variations of the accelerated method of depreciating an asset are the sum-of-years digits (SYD) and the double-declining balance (DDB) methods. Frequently, accelerated depreciation is chosen for a business' tax expense but straight line is chosen for its financial reporting purposes.
A vehicle's decline in value over a period of time.
The amount by which the value of an asset reduces from the beginning of one accounting period to the beginning of the one which follows.
Appreciation refers to the increase of a property's value. Depreciation (the reverse of appreciation) is when a property's value decreases.
When the value of a particular currency falls substantially.
A bookkeeping entry which allows a charge against earnings to account for the decrease in property value through deterioration, wear or obsolescence. No specific funds are used, and no cash outlay is required.
an expense charged against profit for the use of a Fixed Asset. Over the useful life of the Fixed Asset, the depreciation charge will equal the loss in value from Original Cost to Residual Value - see also Methods of Depreciation.
the decreasing value of an asset, for example a house or car, over a period of time.
A decrease in the value of property through wear, etc.
A deduction in the value of an asset to account for wear and tear.
Loss of value due to all causes, but usually considered to include physical deterioration, functional obsolescence and economic obsolescence.
A fall in the value of an asset. In foreign-exchange terms, it is a relative decrease in the value of one currency compared to another.
A decline in the value of a home. Age, inadequate maintenance and market trends may contribute to depreciation.
The dollar amount that reflects the decrease in a vehicle's value due to wear or time. Vehicles often lose the most value during the first couple of years.
A loss of value in real property due to age, deterioration or obsolescence, or due to decreasing property values in the area.
The decrease in value of property over a period of time due to wear and tear or obsolescence.
A method of recovering your purchase price or other basis in an asset over its life rather than deducting the full amount immediately. An expense for book purposes or a deduction for tax purposes. Depreciation is often different for book and tax purposes. See Accelerated Depreciation above.
A decrease in real estate value due commonly to structural age or condition, lack of demand, or other economic conditions causing a decrease in property value.
amortization of fixed assets, such as plant and equipment, so as to allocate the cost over their depreciable life. Depreciation reduces taxable income but does not reduce cash.
A decrease in an automobile's value over time.
Accounting procedure that spreads the cost of an asset over the life time of the asset.
A deduction from the value of fixed assets over time. As in your new automobile starts to depreciate after you drive it from the showroom.
(1) Decrease in the usefulness, and therefore value, of real property improvements or other assets caused by deterioration or obsolescence. (2) A loss in value as an accounting procedure to use as a deduction for income tax purposes.
The writing-down of the cost of an asset systematically over the life of that asset.
If property acquired to use in a business has a useful life longer than one tax year, part of it must be deducted in each year, for example, office equipment, buildings, machinery, and equipment.
The decrease in the value of your car or its parts due to age and general wear-and-tear.
a decrease in the value of a home.
The decrease or decline in the value of a vehicle.
The decline in the value of an automobile due to normal wear and tear. Based primarily on the number of miles driven (the more miles driven, the greater the depreciation) but also may be influenced by vehicle model, maintenance, general consumer demand for the model and the maker's reputation for quality.
A decline in a property's value.
a noncash expense representing the amortization of the cost of fixed assets, such as plant and equipment, over the assetsâ€(tm) estimated useful lives.
For appraisal purposes, loss in value due to any cause, including physical deterioration, functional obsolescence and external obsolescence. (See also obsolescence.)
Annual write-off for accounting purposes to represent the deterioration of an asset over its useful life. Under a finance lease, the lessee must account for the asset as a capital item, following the accounting rules for fixed assets. The lessor records in his balance sheet a receivable of the amount of the minimum lease payments, excluding earnings allocated to future periods. Under an opening lease, only the lessor is concerned with the depreciation. Capital allowances represent depreciation for tax purposes, but are subject to different treatment from accounting depreciation.
A decrease in the value of real property due to a number of causes such as deterioration of the neighborhood.
The decline in the value of an asset or currency. Usually results from a change in demand in the foreign exchange market.
A sum representing presumed loss (from physical wear and economic obsolescence) in the value of a building or other real-estate improvement and deducted annually from net income to arrive at taxable income.
Depreciation is the name given to the amount charged to the profit and loss account to reflect the wearing out of a fixed asset over its useful life. The purpose of depreciation is to comply with the accruals concept. Since the benefit of a fixed asset is received over several periods, the cost of acquiring the asset is charged against profits over those periods. There are several methods available to calculate depreciation. The two most popular approaches are the “straight-line†and “reducing balance†methods. It should be noted that the depreciation charge in the profit and loss account has no effect on the cash flows of a business. It is simply a subjective estimate of the amount by which the value of a fixed asset has fallen below its original purchase cost. Note: not all fixed assets are depreciated. For example, the value of land is rarely depreciated because its value uslaly grows, not falls over time.
A noncash expense reflecting wear and tear of property used as part of a trade or business or held for the production of income.
A decline in property value; opposite of appreciation.
A fall in the value of the flexible exchange rate.
Depreciation is the way in which the value of an asset is written down or reduced over its lifetime.
A prorated lessening of value assigned to a capital asset based upon its useful life expectancy and initial cost. See: Income - Special Income Types especially Self-employment income - General rules; and Self-employment expenses that are not allowed as income deductions; and Clarifying Information
The loss in the value of an asset such as an automobile that occurs over its period of use; calculated as the difference between the price initially paid and the subsequent sales price.
The decrease in value in a home from when the home was first purchased.
An allowance made (charged as an expense in the profit and loss account) for the reduction in value of fixed assets, (particularly machinery, furnishings and motor vehicles) during each accounting period. See page 99 for more details.
The fall in the value of a fixed asset over time. If you run a factory making widgets your machinery will eventually wear out and need to be replaced. The equipment loses its resale value the older it is. Depreciation is the measure of this effect in a company's accounts.
Loss of value in real property brought about by age, physical deterioration, or functional/economical obsolescence. Generally, the loss of value due to any cause.
A system of accounting used to allocate the cost of an asset (less residual value if any) over its estimated useful life. Depreciation recognises the gradual exhaustion of the asset's service capacity.
A system that allows a business or individual to deduct a portion of the cost of an asset ("recover its cost") during each year of its predetermined "life" (or "recovery period").
The loss of value that a vehicle experiences over its lifetime.
A decrease in value due to age, wear and tear, and the like.
The allocation of the cost of an asset to the profit and lost account by allocating part of the cost to each year of its estimated useful life.... more on Depreciation
A reduction or decline in vehicle value over the lease term. It is one of the factors used in establishing Base Monthly Payment.
Process of spreading the cost of tangible, long-lived assets such as buildings and machinery over their useful lives.
a calculation that spreads the cost of an asset over its useful life.
Depreciation is an accounting and tax concept used to estimate the loss of value of assets over time.
Decline in value of an asset. Property depreciation occurs due to general wear and tear.
Certain assets, such as buildings and equipment, depreciate, or decline in value, over time.You can amortize, or write off, the cost of such an asset over its estimated useful life, thereby reducing your taxable income without reducing the cash you have on hand.
The creation of a value equivalent to the asset cost over its useful life.
This is the amount by which property (in this case, a vehicle) loses its value. In leasing, depreciation is the difference between the new car's cost and the value of the car at the end of the lease (plus tax, interest and various leasing fees).
An accounting convention to take into account the physical deterioration of an asset. It is a systematic method to allocate the historical cost of the asset over its useful life.
The decline in value of a piece of property.
The deduction of a reasonable allowance for the wear and tear of assets (excluding inventory) used in a trade or business or held for the production of income. In a more narrow sense, the term depreciation refers to the method used to write off the cost or other basis of assets placed in service before 1981 over their estimated useful lives.
A decline in the economic value of an insured object due to age and use.
A decline in asset values. Property can depreciate as a result of age, obsolescence or lack of maintenance. Depreciation is also a term for writing down the value of an asset over the life of the asset for accounting purposes.
The reduction or decline in a vehicle's value over time. It is a primary factor used to calculate the Base Monthly Payment.
A decrease in the value of a car through wear, deterioration or age.
The amount by which the value of improvement has decreased over time as a result of wear and tear or change in taste. Depreciation can be classified as physical or functional and curable or incurable.
A method of calculating and writing off the costs of fixed assets, such as machinery, buildings, trucks, and equipment. Investment in such fixed assets, which wear out or become obsolete over time, is a normal expense of business.
a tax deductible expense for normal wear and tear of tangible property that has a useful life more than a year. This property is used for business or income-producing purposes.
In real estate and mortgage terms, the decline in the property value.
A decrease in value of an asset due to age or wear. Depreciation affects the book value of assets of a business. It is a non-cash expense.
Normally, charges against earnings to write off the cost, less salvage value, of an asset over its estimated useful life. It is a bookkeeping entry and does not represent any cash outlay nor are any funds earmarked for the purpose.
A non-cash expense that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long term assets over the useful life of the assets.
Loss in value through time.
The decline in value of an asset over a period of time.
(1) for tax purposes, a non-cash expense real estate investors claim, based on purchase price of real estate (excluding land). For real estate, depreciation is claimed on the straight-line basis (the same amount claimed each year) over 27.5 years (for residential property) or 39 years (for non-residential property). (2) for appraisal purposes, a reduction in appraised value based on the age and condition of property.
A deductible expense for wear and tear of tangible property that has a useful life of more than one year and is used for business or income-producing purposes.
This is a systematic apportionment of the cost of assets to the expense account over the entire period its useful life.
Reduction in the value of property due to age and use.
measured decrease in value of the boat, parts and equipment due to age and condition.
Decrease in value to real property caused by deterioration or obsolescence, usually used for tax purposes. In the real world, continuous monetary inflation masks depreciation.
A means for a firm to amortize the cost of a purchased asset, over time, through periodic deductions or offsets to income. Depreciation is used in both a financial reporting and tax context, and is considered a tax benefit because the depreciation deductions cause a reduction in taxable income, thereby lowering a firm's tax liability.
value lost in assets as they wear out or become obsolete.
Depreciation is a non-cash charge that represents a reduction in the value of fixed assets due to wear, age, or obsolescence. This figure also includes amortization - or expensed portion - of leased property, intangibles, goodwill, and depletion.
An annual write-off of a portion of the cost of fixed assets, such as vehicles and equipment. Depreciation is listed among the expenses on the income statement.
The accounting method which charges a portion of the cost of a capital asset to expense throughout the useful life of the asset. This method has the effect of evening out the expense of purchasing a capital asset over several accounting periods or years. Absent a depreciation policy, the entire cost of an asset would be charged as an expense in the year of purchase.
The allocation of the cost of a tangible, long-term asset over its useful life.
Amortization of fixed assets, such as furniture and fixtures, so as to allocate the cost over their estimated useful lives. Depreciation reduces the carrying value of property, plant and equipment earnings but does not reduce cash.
When a currency loses value, it is depreciating.
For tax purposes, a deduction on the cost of income producing assets. (e.g. office partitions, hotel décor, canopies).
The reduction in the balance sheet value of a company Asset to reflect its loss of value through age and wear and tear.
The decrease in property value due to market conditions or deteriation.
Depreciation is a term used to describe the worsening of a currencies value due to various economic factors. Depreciation is caused when supply outweighs demand, for whatever reason, and because of the surplus currency on the market its value to investors drops. Depreciation is the opposite of appreciation.
The decline in value of property due to age, use, wear and tear, etc. Depreciation is a very important item in the adjusting of property losses.
A drop in the value of a property over time. Opposite of Appreciation.
A means of accounting for the wearing out or gradual obsolescence of a utility plant's equipment and buildings. As this occurs, an allowance for depreciation expense is made by the PUC that a carrier can charge for transporting materials and are published in minimum rate tariffs (MRTs). It is unlawful to charge below these rates, unless the Commission approves a deviation.
The decrease in value of a vehicle over time. Depreciation in automobile leasing is the difference in value between the cost of a new vehicle and the value of the vehicle at the end of the lease term.
The value that a car is projected to lose over the period of time you drive it. It's the difference between the adjusted capitalized cost and the residual value.
A charge made against a Company's gross profit to take into account wear and tear or obsolescence of its assets. This charge is set against the asset's value to establish its true worth to the Company. Funds so charged may be set aside to replace or refurbish assets so treated. See also 'Amortisation'.
A decrease in value of real property caused by age, use, obsolescence and physical deterioration. A noncash accounting expense that reflects the allowable deduction in book value of assets such as machinery, buildings or breeding livestock.
Decrease in a property's value (the reverse of appreciation).
The decrease in the value of an asset allowed when computing property value for tax purposes. It can also be a loss in the appraised value of a property due to physical deterioration. This latter type of depreciation is curable when it can be remedied by repair or an addition to the property, and incurable when there is no easy or ecomomic remedy.
This is the estimate of the decrease in value in a wasting asset (not land) due to such factors as use and obsolescence. In Nevada, for purposes of real property appraisal, depreciation is calculated at 1.5 percent of the cost of replacement for each year up to 50 years. Personal property depreciation is calculated according to a schedule approved by the Nevada Tax Commission. For purposes of taxation motor vehicles are not considered personal property and are not subject to property taxes. They are however subject to a separate government services tax.
The process of allocating the cost of property, plant, and equipment as an expense in a systematic and rational manner to those periods expected to benefit from the use of the asset.
The tax deduction for writing off the cost of wear and tear of tangible property and business assets over an IRS-specified number of years.
The annual reduction in the value of an asset attributed to normal wear and tear. Depreciation is based primarily on miles driven. The greater the miles, the greater the depreciation. Annual depreciation rates for autos are also influenced by vehicle model, maintenance, general consumer demand for the model, and the maker's reputation for quality. Luxury cars retain their value longer and, hence, depeciate more slowly. Depreciation expense is used to calculate the residual value for preparing closed-end leases.
A vehicle's decline in value over the term of the lease.
Means for a firm to recover the cost of a purchased asset, over time, through periodic deductions or offsets to income. Used in both a financial reporting and tax context. Considered a tax benefit because the depreciation deductions cause a reduction in taxable income, and therefore, the firm may experience a lower tax liability.
The amount by which the asset is estimated to go down in value during the lease term.
A fall in the value of a currency against another currency or group of currencies.
1. In appraising, a loss in property value from any cause; the difference between the reproduction or replacement cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date; 2. In regard to improvements, depreciation encompasses both deterioration and obsolescence.
Loss in value of both real and personal property that develops as items age, wear out, or become obsolete. In a sense, depreciation reflects value of the property that has already been used up.
Depreciation is an accounting term that refers to loss of value of real property due to age, physical deterioration, or functional obsolescence. Also, it is the change in value of a real estate investment over the useful life of the investment.
Decline in the value of vehicle over the term of the lease or a set time period. Calculated by taking the difference between leased vehicle amount (selling price) and residual.
The allocation of the cost of a capital expenditure to the periods of its use.
Non-monetary expense associated with the replacement of aging capital items.
Decline in the value of a currency, financial asset, or capital good. When applied to a capital good, depreciation usually refers to loss of value because of obsolescence or wear.
Also referred to as "Amortization". Represents a portion the cost of a capital asset which is matched against the annual revenues generated by the asset. The cost of the asset is amortized over its useful life to determine the amount of the annual depreciation expense. Rules are determined by MEQ's Cahier des Définitions and/or the CICA Handbook.
A decrease or loss in the value of property.
As applied to a depreciable electric plant, this term means the loss in service value, not restored by current maintenance, incurred in connection with the consumption or prosective retirement of the elctric plant in the course of service, from causes which are known to be in current operation, and against which utility is not protected by insurance.
An allowable tax deduction for assets or property that are used up over their economic life period of time.
Straight Line Depreciation: the provision each year of a fixed proportion of the original cost of the asset; Diminishing Value Depreciation: the provision by annual instalments of a diminishing amount computed by taking a fixed percentage of the book value of the asset as reduced by previous provisions.
a decrease in a currency's value which occurs under a floating exchange rate regime. If the A$ was worth US$0.54 and is now worth US$0.50 it has depreciated against the US$ (equally the US$ has appreciated against the A$)
Reduction in worth over time.
The systematic allocation of the cost of property, plant and equipment, that is, fixed assets will material value and lives longer than a year.
A decrease in the value of an asset through age, use, and deterioration. In accounting terminology, depreciation is a deduction or expense claimed for this decrease in value.
A decrease in value of a vehicle or property due to age, use, wear and tear, etc.
is also termed capital consumption. TME includes public sector expenditure gross of the depreciation of capital assets used to produce non-market services. Public sector net investment deducts an aggregate charge for all depreciation (market and non-market) from gross capital spending.
Decrease in value to real property or improvements caused by deterioration, obsolescence, or economic factors.
an amount of an asset’s value that is taken as an expense over a period of time.
A decrease or gradual loss in value because of age, natural wear, or market conditions.
Expense allowance made for wear and tear on an ASSET over its estimated useful life. (See ACCELERATED DEPRECIATION and STRAIGHT-LINE DEPRECIATION.)
Writing down the value of an asset in a company'sbooks to reflect its loss of value through age and use.
Decrease in value for various reasons Due diligence is often performed on the acquirer as well as the target
The amount of a vehicle's projected decline in value through normal use during the lease term, calculated as the adjusted capitalized cost minus the residual value.
A decrease in a property's value. Your home can lose value over time due to any number of reasons, such as poor condition, an over supply of homes in the market, or a declining neighborhood. If you buy a house for $100,000 and sell it two years later for $90,000, your home has depreciated by $10,000. Unless it's a rental property, you don't get any tax deductions on this loss.
The value lost as the vehicle ages. During the early years of the vehicleâ€(tm)s life depreciation is usually rapid and can be greater or less than the average because of mileage and wear and tear.
The process of writing down the value of an asset each year to reflect the fact that it becomes less valuable over time.
A decrease in the value of property over time (as a result of market changes, wear and tear on the property, etc.).
An asset's deemed loss in value over a period of time.
A decrease in the value of an investment.
A decline in the value of a home as a result of time, changes in the housing market, wear and tear, adverse changes in the neighborhood and its patterns, or for any other reason. Source: The Massachusetts Homeownership Collaborative
Reduction in the book or market value of an asset; charge made to allocate the cost of an asset over its expected useful life; portion of an investment that can be deducted from taxable income.
The allocation or distribution of the cost of capital assets, less any salvage value, to expenses over the estimated useful life of the asset in a systematic and rational manner. Depreciation for the year is the amount of the allocation or distribution for the year involved.
Decrease in the value of an asset over time.
A non-cash expense that is charged to against earnings to write off the cost of an asset throughout its life.
A loss of utility and hence value from any cause, an effect caused by deterioration and /or obsolescence. Deterioration or physical depreciation is evidenced by wear and tear, decay, dry rot, cracks, incrustation, or structural defects. Obsolescence is devisable into two parts, functional and economic. Functional obsolescence may be due to poor plan, mechanical inadequacy or overadequacy, functional inadequacy or overadequacy due to size or style, age, etc. It is evidence by conditions within the property. Economic obsolescence is caused by changes external to the property such as neighborhood infiltrations by inharmonious groups or property uses, legislation, etc. It is also the actual decline of market value of the improvement to land from time of purchase to time of resale.
The decline in the value of property.
A common foreign exchange term describing the event of one currency weakening or decreasing in value relative to another currency. Depreciation is generally used to describe permanent or long term devaluation of currencies as opposed to daily or short term market movements. Often the term indicates the formal devaluation of the currency or intervention by a central bank.
The loss of value due to any cause (including physical, functional, and economic), a condition that adversely affects the value of an improvement.
Depreciation is a decrease in the value of an asset, caused by wear and tear or by obsolescence. In accounting, the act of depreciating an asset is also supposed to create a reserve for the replacement of the asset. The use of depreciation affects a company's (or an individual's) financial statements, and, more importantly to them, their taxes.
The decrease in the value of a capital asset with time. The method of depreciation is set by income tax rules that allow various rates of depreciation. The amount depreciated each year is considered an expense for tax purposes (Winston, 1995)
The value the vehicle loses during the time it is in your possession; the single largest cost of ownership.
Charges made against earnings to write off the cost of a fixed asset over its estimated useful life. Depreciation does not represent a cash outlay. It is a bookkeeping entry representing the decline in value of an asset that is wearing out.
This amount is used to determine the amount that something is worth based on it's remaining useful value. Depreciation only applies to fixed asses.
This is the expense associated with the systematic write off of assets used to run your business. The rate of this write off is determined by the useful life of the asset. If an assets has a useful life of 5 years then the depreciation rate used is 20% (100% / 5 years = 20%)
A decrease or loss in value because of wear, age, obsolescence or other cause.
The reduction in value of property over a period of time. Usually as a result of age, wear and tear, or economic obsolescence.
The using up or wearing out of capital goods.
the reduction in value of a fixed asset due to use, obsolescence, etc. (by a charge against profits); or the loss of value of a currency.
An allowance provided by the Tax department on building structures, fixtures and fittings.This is an allowance to deduct the cost of wear & tear on your building,fixtures & fittings annually. The amount deducted is taken off your income saving you tax. Hide Definition
A proportion of the value of capital assets is deducted on an annual basis to reflect, in theory, the rate at which their value diminishes over their useful life. The amount is then applied as a charge to the profit and loss account.
A decrease in the value of a country's currency in terms of another currency
The gradual erosion of the usability and value (possibly due to obsolescence) of an enterprise's fixed assets. In some cases depreciation can be declared as a tax deduction.
The amount by which an asset has decreased in value. · See Also · Appreciation
A currency is said to depreciate when price of that currency declines in response to decrease in market demand.
A fall or decline in the value of a currency due to market forces.
The allocation of the cost of an asset over a period of time for accounting and tax purposes.
You can deduct a specified amount of the purchase price of business equipment, for tax purposes, to calculate your company's taxable income. Your accountant can provide details.
Decline in the value of one currency relative to another. Occurs when, because of a change in exchange rates, a unit of one currency buys fewer units of another currency.
The decrease of value in property over a period of time due to wear and tear or obsolescence.
The expense recognized in writing off the cost of a plant or machine over its useful life, giving consideration to wear and tear, obsolescence, and salvage value. Methods vary. Examples are straight line (SL), accelerated methods such as sum-of-the-years digits (SYD), and double-declining balance (DDB) methods. Primarily accelerated depreciation is chosen for a business' tax expense but straight line is chosen for its financial reporting purposes.
The amount of a deduction from the initial value ( cost basis) of property to reflect the decline in value over time.
A deduction of part of the cost of an asset annually. This is charged to the profit & loss account.
Decline in value of a property due to use, wear and tear, obsolescence or deterioration. Alternately, spreading out of the original cost over the estimated life of the fixed assets such as plant and equipment to reduce taxable income.
The decline in value of a limited-life tangible asset, such as a building, machine, vehicle, equipment, furniture, etc., due to age, and to the normal wear and tear of use. In general, depreciation assigns to a fiscal period a portion of the original cost of the capital cost asset.
a percentage of the cost of capital equipment is written off each year and is called depreciation. Typically five year for process equipment, ten years for facility systems and thirty years for the bricks and mortar.
decrease in the value of property over a period of time due to wear and tear, and obsolescence.
The amount by which an asset's value falls in a given period.
Except for land, assets wear out. The value goes down and can be deducted from your business as an expense. Present values of assets are shown as original cost less depreciation. Market value, or the price you could sell it for, could differ from this figure.
The loss of value a piece of property has due to passing time, changes in the market, etc. The opposite of appreciation.
1) The expense against earnings to write-off purchase price of an asset over its useful life. 2) A decrease in a currency value relative to another currency in a floating exchange rate system.
property’s decline in value due to wear and tear, adverse changes in the neighborhood, or any other reasons.
Amortization of the cost of a fixed asset, such as plant and equipment, over several years, or the "depreciable life."
(I) In appraisal, a loss of value in property due to any cause, including physical deterioration, functional obsolescence and external obsolescence. (2) In real estate investment, an expense deduction for tax purposes taken over the period of ownership of income property.
A non-cash writing-down of the cost of an asset over its useful life.
1. A tax deduction that compensates a business for the cost of certain tangible assets. 2. A decrease in the value of a particular currency relative to other currencies.
Decrease in value of property because of deterioration or obsolescence; sometimes, an artificial bookkeeping concept valuable as a tax shelter
The decrease in property value when it has not been improved or maintained so as to offset the effects of age, wear and tear.
A decrease or loss in property value due to wear, age or other cause.
The natural decline in value of the improvement due to market forces or deterioration of the improvement
For accounting and tax purposes, the allowance made to reflect a tangible asset's loss in value over time.
The gradual loss of value of a building or other property because of age or natural wear.
A loss in value due to any cause, or more specifically the decline in the value of a real estate investment resulting from physical deterioration (ordinary wear and tear), and functional obsolescence.
A decline in value of a piece of property due to any cause.
The decrease in price or value over time in relation to a specific asset.
See currency depreciation.
Cost allocation that assigns the original cost of plant and equipment to the period over which it was held.
decline in the value of an asset over time
A deduction from business profits made to write off the cost of capital assets over their expected useful lives. Depreciation is not an allowable expense for tax purposes, but is capital allowances given an equivalent kind of tax deduction.
A loss in value for any reason; a deduction for tax purposes.
The extent to which (insured) property has diminished in value due to factors such as wear and tear.
Reduction in value of property through use, aging, deterioration and obsolescence.
An expense recorded to reduce the value of a long-term tangible asset. Since it is a non-cash expense, it increases free cash flow while decreasing the amount of a company's reported earnings.
The reduction in the balance sheet value of a company asset to reflect its loss of value through usage in the business.
The decreasing value of a fixed asset during its projected life expectancy. The Internal Revenue Service permits several processes to calculate annual depreciation amounts over asset life expectancy.
Depreciation is a term used in accounting, economics and finance with reference to the fact that assets with finite lives lose value over time. (There is also a separate use in international finance to refer to a reduction in the exchange rate of a currency - see devaluation).