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Related to depreciating: deprecating, Depreciating asset


in accountingaccounting,
classification, analysis, and interpretation of the financial, or bookkeeping, records of an enterprise. The professional who supplies such services is known as an accountant. Auditing is an important branch of accounting.
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, reduction in the value of fixed or capital assets, as by use, damage, weathering, or obsolescence. It can be estimated according to a number of methods. In the straight-line method, depreciation is simply seen as a function of time; the cost of the asset, minus its value as scrap, is divided by an estimate of its life. Other methods distribute depreciation over the life of the asset by gradually increasing, or gradually diminishing, installments. The resale value of a machine generally declines most quickly during its early years; thus its depreciation is measured in decreasing installments. The opposite is true of rights of limited duration, such as copyrights and leaseholds, whose value depreciates most quickly as their date of expiration approaches. The technical name for the depreciation of such nonmaterial rights is amortization. The problem of calculating depreciation has special importance because of the need for accuracy in income tax returns. Failure to make allowance for depreciation results in overestimating income. Depreciation of money is brought about by a decline in the price of a particular currency in terms of other currencies, thereby lowering the foreign exchange value of the first currency.


See J. D. Coughlan, Depreciation (1969); R. P. Brief, ed., Depreciation and Capital Maintenance (1984).


The reduction in the value or worth of an asset, such as a building, through physical deterioration over time, and general obsolescence.


(industrial engineering)
Loss of value due to physical deterioration.


Economics a decrease in the exchange value of currency against gold or other currencies brought about by excess supply of that currency under conditions of fluctuating exchange rates
References in periodicals archive ?
All well and good - but when the Mirror compiled its own list of best and worst depreciating cars last year our findings generally coincided with the views of both CAP and Glass's.
Accountants sometimes refer to depreciating assets, but this is generally a term to show how a particular item has fallen in value," Thomas explains.
He does not believe such as issue will carry much weight in a British court but says his firm would be happy to undertake a test case for performers whose assets are depreciating.
However, before the final regulations are issued, the IRS will allow "any reasonable method" of depreciating the property to be used in the change year and subsequent tax years, as long as the method is consistently applied.
They mistakenly capitalize these costs into the project basis and depreciate them over 39 years instead of allocating them to their true asset class lives and depreciating them over 5, 7, or 15 years.
Section 167(a) implies that "property" includes both tangible and intangible assets, but the regulations contain restrictive language on depreciating intangibles.
BHS's depreciation practices, which were established early in BHS's experience, have the effect of essentially entirely depreciating capitalized subscriber installation expenditures within eight years.
NGS), TC Memo 2001-277, the Tax Court held that a corporation failed to properly opt out of depreciating its rental game equipment under the modified accelerated cost recovery system (MACRS).
This approach can have a particularly harsh, result, because X would effectively be depreciating a portion of the basis (approximately $11,700,000 of the warehouse's original cost) over 52 years (39 + 13) rather than 31.
1033 involuntary conversion have new guidance for depreciating the acquired property under Sec.
Little satisfaction is gained from depreciating commercial real estate over 39 years; however, taxpayers acquiring such property may be able to get a greater tax advantage by depreciating some parts of their purchase over a much shorter period.