Define: Depreciation

UK Accounting Glossary

Definition: Depreciation


Quick Summary of Depreciation


The systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount is cost less residual value.



What is the dictionary definition of Depreciation?

Dictionary Definition



Full Definition of Depreciation




Examples of Depreciation in a sentence


They wrote off over £600 due to depreciation of the machinery.
It’s important to account for depreciation when calculating the costs.
Depreciation accounting is a technique used to allocate the cost of a capital asset over its expected useful life.
There’s special rules concerning the depreciation of real estate.



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Depreciation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 22, 2019 https://payrollheaven.com/define/depreciation/.
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Depreciation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/depreciation/ (accessed: July 22, 2019).
American Psychological Association (APA):
Depreciation. PayrollHeaven.com. Retrieved July 22, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/depreciation/

Definition Sources


Definitions for Depreciation are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.