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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).

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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


(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.


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 ?
Depreciation. Section 864(e) of the Code provides the allocation and apportionment of interest expense to be made on the basis of assets rather than gross income.
* New ways of looking at asset costs and depreciation.
We also demonstrate that the value of the DTL is not equal to the present value of future deferred tax expenses because the value of the DTL only depends on cash flows associated with tax depreciation, whereas the changes in the DTL depend on both tax and book depreciation.
Betz gives two broad explanations for why we may not see the results we would expect from a move to bonus depreciation. The first is that the investment multiplier--that is, the effect on economic activity from any investment--varies across the business cycle.
Against the entire year sale of equities worth $339 million in 2016, figures released by National Clearing Company of Pakistan Ltd (NCCPL) show a net outflow of $494m since January, with no major new buying after the recent depreciation.
EFG Hermes Pakistan Chief Executive Officer Muzammil Aslam said, 'Each percentage-point depreciation in the rupee adds up 0.5-0.75 percentage point to the inflation (in Pakistan).'
GASB prefers using composite depreciation over group depreciation.
Property eligible for bonus depreciation must be original-use property, placed in service in the applicable time frame, and qualified property under Sec.
Property eligible for bonus depreciation also must be original-use property, placed in service in the applicable time frame, and qualified property under Sec.
31, 2019, and will allow bonus depreciation of 50% for tax years 2015-17, 40% in 2018, and 30% in 2019.
Correcting assets and bringing them to the level of inventory value is done, depending on the type of depreciation, either by registering added depreciation, if there is an irreversible impairment or by establishing or supplementing the adjustments for depreciation, in which case there is a reversible depreciation of them.