depreciation

(redirected from Depreciating asset)
Also found in: Dictionary, Thesaurus, Medical, Legal, Financial.
Related to Depreciating asset: depreciation rate, depreciation methods, depreciated

depreciation,

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.
..... Click the link for more information.
, 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.

Bibliography

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

Depreciation

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

depreciation

[di‚prē·shē′ā·shən]
(industrial engineering)
Loss of value due to physical deterioration.

depreciation

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 ?
In finance parlance, they are called depreciating assets.
The Scotland star also won the treble but he played in less than half of the club's league games and, at 33, he is a depreciating asset.
Brown claimed Stock Exchange rules prevent him commenting on transfers but he admitted: "From the plc's point of view, di Canio is a depreciating asset.
After all, he says, a car or a holiday is a depreciating asset, whereas education gives you a start that lasts for life.
A car is a depreciating asset, so they put their money into appreciating assets that go up daily," explains Rashad.
Even though a cash purchase might win you a small discount, you'd still be putting your hard-earned money into a depreciating asset.
Many people do this even if they have money sitting in a building society or a PEP because they don't want to dip into their savings to buy a fast depreciating asset.
In today's market, Sentient offers better solutions for private jet travel by providing competitive rates, freedom from the depreciating asset risk of fractional ownership, and a renowned commitment to safety and service.
Instead of sinking precious capital into a depreciating asset that caps productivity, organizations should consider the efficiency gains of unlimited capacity and system reliability.
In today's market, Sentient has better and more practical solutions for private jet travel today - with competitive rates, freedom from the depreciating asset risk of fractional ownership, and a renowned commitment to safety and service.
Compared to fractional programs that are capital-intensive and have significant depreciating asset risk, Membership Plus provides a more relevant and comprehensive solution with superior economics.
This unique approach allows retailers to focus on driving more sales and not be concerned with purchasing a depreciating asset.