depreciation

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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.
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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.

Bibliography

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

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Depreciation

The reduction in the value or worth of an asset, such as a building, through physical deterioration over time, and general obsolescence.
Illustrated Dictionary of Architecture Copyright © 2012, 2002, 1998 by The McGraw-Hill Companies, Inc. All rights reserved

depreciation

[di‚prē·shē′ā·shən]
(industrial engineering)
Loss of value due to physical deterioration.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.

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
Collins Discovery Encyclopedia, 1st edition © HarperCollins Publishers 2005
References in periodicals archive ?
The SBP had let the rupee depreciate significantly in the inter-bank market after finalising an agreement with the International Monetary Fund (IMF) for a loan programme on May 12.
The answer is yes, HUMANS DEPRECIATE. I don't meant that in the physical sense as a loss of abs or some such thing.
'There is speculation the rupee will depreciate to 165-170 against the US dollar in the inter-bank market as per IMF's conditions,' Exchange Companies Association of Pakistan Secretary General Zafar Paracha said while talking to media.
Umar's comments follow a statement by the State Bank of Pakistan's Banking Policy and Regulations Group Executive Director Syed Irfan Ali saying that the rupee will not depreciate against the US dollar anymore, with the government making six major foreign payments last week.
This marks the sixth time since last December, that the central bank has allowed the rupee to depreciate against the greenback as inflationary pressure, rising fiscal and current account deficits alongside stagnant exports compelled it to take this move.
The Supreme Court concluded that the term "ACV" is unambiguous and that depreciation of labor does not lead to underindemnification and failure to depreciate labor would result in overindemnification.
He suggested that instead to depreciate the rupee, the government should rebate the exporters in utility charges and release their refunds that would encourage them for more exports.
The underlying arbitrage should quickly eliminate the international return differentials by narrowing interest-rate spreads and encouraging the foreign currencies to appreciate in the spot market, and depreciate in the forward market, relative to the dollar.
The Treasury has issued final regulations (Treasury Decision 9314) explaining how to depreciate modified accelerated cost recovery system (MACRS) property that has been acquired in a section 1031 like-kind exchange or through a section 1033 involuntary conversion when both the acquired and relinquished property are subject to MACRS in the hands of the acquiring taxpayer.
Prior to 1981, taxpayers could depreciate each component of a building separately; for example, the shell might be depreciated over 40 years and the roof over 20.
In case you haven't heard, MEV is a DoD-wide effort to capitalize, depreciate, properly account for, and report military equipment.