Depreciation

Depreciation
A non-cash expense that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring Long term assets over the useful life of the assets. The New York Times Financial Glossary

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US /dɪˌpriːʃiˈeɪʃən/ noun [U]
ACCOUNTING, TAX the amount by which something, such as a piece of equipment, is reduced in value in a company's financial accounts, over the period of time it has been in use. The loss in value reduces a company's profits, and the amount of tax it must pay: »

accelerated depreciation

»

Expenses include depreciation of equipment as well as business insurance.

»

a depreciation charge/deduction

Compare AMORTIZATION(Cf. ↑amortization)
ACCOUNTING the practice of spreading the cost of capital expenditure over several years, especially in order to improve cash flow
MONEY, FINANCE the amount by which a currency loses value in comparison with other currencies: »

The depreciation of the dollar affected the British economy.

»

the depreciation of sterling against the euro

»

Depreciation in the peso since last December could dent sales and cut profit.

Compare APPRECIATION(Cf. ↑appreciation)
FINANCE, INSURANCE a loss of value, especially over time: »

After three years, this car is projected to be worth 57% of its price when new - one of the lowest rates of depreciation of any car in any class.

»

The insurance guarantees that the goods will be replaced at their present market value, without any deduction for depreciation.

Compare APPRECIATION(Cf. ↑appreciation), WEAR AND TEAR(Cf. ↑wear and tear)
See also ACCELERATED DEPRECIATION(Cf. ↑accelerated depreciation), ACCUMULATED DEPRECIATION(Cf. ↑accumulated depreciation), BOOK DEPRECIATION(Cf. ↑book depreciation), TAX DEPRECIATION(Cf. ↑tax depreciation)

Financial and business terms. 2012.

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  • dépréciation — [ depresjasjɔ̃ ] n. f. • 1771; de déprécier ♦ Action de déprécier, de se déprécier; état de ce qui est déprécié. Dépréciation des marchandises, de l or, de l argent. ⇒ avilissement, baisse, décote, dévalorisation. L inflation entraîne la… …   Encyclopédie Universelle

  • Depreciation — Dépréciation En économie, une dépréciation est une perte de valeur d un bien, ou plus généralement d une monnaie. En comptabilité générale, une dépréciation est la constatation comptable d une moins value probable sur un élément d actif. Sommaire …   Wikipédia en Français

  • depreciation — de·pre·ci·a·tion /di ˌprē shē ā shən/ n 1: any decrease in the value of property (as machinery) for the purpose of taxation that cannot be offset by current repairs and is carried on company books as a yearly charge amortizing the original cost… …   Law dictionary

  • Depreciation — De*pre ci*a tion (d[ e]*pr[=e] sh[i^]*[=a] sh[u^]n), n. [Cf. F. d[ e]pr[ e]ciation.] 1. The act of lessening, or seeking to lessen, price, value, or reputation. [1913 Webster] 2. The falling of value; reduction of worth. Burke. [1913 Webster] 3.… …   The Collaborative International Dictionary of English

  • DEPRECIATION — Снижение стоимости обесценивание валюты, вызванное действием рыночных механизмов и не связанное с действиями государственных организаций Словарь бизнес терминов. Академик.ру. 2001 …   Словарь бизнес-терминов

  • depreciation — 1767, a lowering of value (originally of currency), noun of action from DEPRECIATE (Cf. depreciate). Meaning loss of value of a durable good by age or wear is from 1900 …   Etymology dictionary

  • depreciation — [n] devaluation accounting allowance, deflation, fall, loss of value, reduction, slump; concepts 137,236,240,247 …   New thesaurus

  • depreciation — [dē prē΄shē ā′shən, diprē΄shē ā′shən] n. [see DEPRECIATE ] ☆ 1. a) a decrease in value of property through wear, deterioration, or obsolescence b) the allowance made for this in bookkeeping, accounting, etc. ☆ 2. a decrease in the purchasing… …   English World dictionary

  • Depreciation — Not to be confused with Deprecation. 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 periods in which the assets are used… …   Wikipedia

  • depreciation — /dapriyshiyeyshsn/ In accounting, spreading out the cost of a capital asset over its estimated useful life. Depreciation expense reduces the taxable income of an entity but does not reduce the cash. A decline in value of property caused by wear… …   Black's law dictionary

  • depreciation — /dapriyshiyeyshsn/ In accounting, spreading out the cost of a capital asset over its estimated useful life. Depreciation expense reduces the taxable income of an entity but does not reduce the cash. A decline in value of property caused by wear… …   Black's law dictionary

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