1. A noncash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time (in other words, they depreciate), and must be replaced once the end of their useful life is reached. There are several accounting methods that are used in order to write off an asset's depreciation cost over the period of its useful life. Because it is a non-cash expense, depreciation lowers the company's reported earnings while increasing free cash flow.
2. A decline in the value of a given currency in comparison with other currencies. For instance, if the U.S. dollar depreciates against the Euro, buyers would have to pay more dollars in order to obtain the original amount of euros before depreciation occurred.
Related information about depreciation:
- Depreciation - Wikipedia, the free encyclopedia
Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and; the allocation of the cost of assets to ...
- A Brief Overview of Depreciation
Oct 30, 2012 ... Depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property. It is an annual allowance ...
- Depreciation Definition | Investopedia
1. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes. 2.
- Depreciation | AccountingCoach.com
Gain an understanding of depreciation from AccountingCoach.com for FREE. Learn how depreciation affects the income statement and the balance sheet.
- What is depreciation? definition and meaning
Definition of depreciation: A noncash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value ...
- Depreciation Methods, Accounting
GAAP. Depreciation is a systematic and rational process of distributing the cost of tangible assets over the life of assets. Depreciation is a process of allocation.
- Depreciation - YouTube
Aug 20, 2009 ... Learn more: http://www.khanacademy.org/video?v=a5sFUXkxyGc Depreciation a capital asset.
- depreciation - The Free Dictionary
de·pre·ci·a·tion (d -pr sh - sh n). n. 1. A decrease or loss in value, as because of age, wear, or market conditions. 2. Accounting An allowance made for a loss in ...