logo share us



Definition: Depreciation is an accounting treatment reflecting
- the decrease in value of a tangible asset (fair value depreciation).
- the allocation of the cost of a tangible asset to the periods in which it is used (traditional depreciation).
The precise methods for calculating D differ per jurisdiction (country), accounting standard, and asset type. Accounting rules may require that an impairment charge or expense be recognized if the value of an asset declines suddenly.
D is similar to Amortization and Depletion, but the second is used for intangible assets and the last for minerals and oil.
A is the opposite of appreciation.


Learn more about Depreciation.

More on accounting and auditing: Accounting Cycle, Accounts Payable, Accounts Receivable, Accrued Revenue, Amortization, more on accounting and auditing...

MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.

add us to your desktop

Add MBA Brief to your desktop / iPad


© 2024 MBA Brief - Last updated: 18-6-2024  -  Privacy   |   Terms