DEPRECIATION

Depreciation

The former affects the balance sheet of a business or entity, and the latter affects the net income that they report. Generally the cost is allocated, as depreciation expense, among the periods in which the asset is expected to be used. This expense is recognized by businesses for financial reporting and tax purposes. Methods of computing depreciation, and the periods over which assets are depreciated, may vary between asset types within the same business and may vary for tax purposes. These may be specified by law or accounting standards, which may vary by country. There are several standard methods of computing depreciation expense, including fixed percentage, straight line, and ...

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depreciation

Noun

  1. The state of being depreciated.
  2. The decline in value of assets.
  3. The measurement of the decline in value of assets. Not to be confused with impairment, which is the measurement of the unplanned, extraordinary decline in value of assets.


The above text is a snippet from Wiktionary: depreciation
and as such is available under the Creative Commons Attribution/Share-Alike License.

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