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


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

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Full Definition of Depreciation



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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. September 15, 2019 https://payrollheaven.com/define/depreciation/.
Chicago Manual of Style (CMS):
Depreciation. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/depreciation/ (accessed: September 15, 2019).
American Psychological Association (APA):
Depreciation. PayrollHeaven.com. Retrieved September 15, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/depreciation/

Definition Sources


Definitions for Depreciation are sourced/syndicated from:


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