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 Depreciation (currency)). In accounting, depreciation is a term used to describe any method of attributing the historical or purchase cost of an asset across its useful life, roughly corresponding to normal wear and tear. It is of most use when dealing with assets of a short, fixed service life, and which lose value over that 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
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
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 allocation of the cost of an asset over a period of time for accounting and tax purposes A decline in the value of a property due to general wear and tear or obsolescence; opposite of appreciation
(Ticaret) 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