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To allocate the purchase cost of an asset over its life.


The gradual reduction of an asset's value. It is an expense, but because it is non-cash, it is often effectively a tax write-off; that is, a person or company usually may reduce his/her/its taxable income by the amount of the depreciation on the asset. Because there are many different ways to account depreciation, it often bears only a rough resemblance to the asset's useful life. This may further benefit the company as they may continue to use the asset tax-free after its value has technically depreciated to nothing. See also: Amortization.


To reduce the value of a long-term tangible asset.
References in periodicals archive ?
Castle lives in a more polite coffee world than some for in "Coffee Business Terminology Made Simple", another section that informs and tickets simultaneously, he indicates that "Conniving Scoundrel" is the depreciatory sobriquet of choice in coffee I guess we just don't know the same folks.
As a result, mounting depreciatory forces in the form of lower remittances from Russia and reduced gold exports will come to the fore, significantly weakening the som.
The Ghanaian current account deficit will remain wide in 2015 and 2016, and this, combined with weak investment inflows, will continue to exert depreciatory pressure on the Ghanaian cedi.
The depreciatory pressure this has placed on the Russian rouble has also forced the central bank to hike interest rates, which will raise financing costs for domestic projects funded in roubles.
Adding to the gloom surrounding the local sales market, we believe that the rand will continue its depreciatory trajectory over the coming two years, driven lower by the country's sizeable current account deficit.
The main factor underpinning our revision is the depreciatory impact of building expectations for a normalisation in monetary policy in the US, and ongoing intervention by the Colombian central bank.
We believe that rather than allowing depreciatory pressures to build up to the point where a significant devaluation is required, the central bank will engage in a series of shifts of the exchange rate band.
Yemen's current account dynamics remain precarious; with minimal inflows of capital on the financial account, another uptick of instability and an intensification in attacks on the country's hydrocarbon infrastructure could see the rial coming under unsustainable depreciatory pressure.
000/USD mark, monetary authorities have once again opted for a gradual depreciatory policy, returning to the crawling peg against the US dollar, broadly in line with our forecast for this year.
5% and the lira may not have ended its depreciatory run, there are upsides.
While we do not anticipate significant exchange rate volatility in the short term, we believe that the Argentine central bank will be forced to resume its crawling peg policy of gradually weakening the peso in order to manage depreciatory pressure on the unit, a return to the policy of the last several years that we expect to play out in the coming months.