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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 ?
The biggest depreciators include the Vauxhall Vectra, Rover 45,Alfa Romeo 166, Peugeot 607 and Renault Vel Satis.
Fast depreciators are large saloons from volume manufacturers where new sales were distress-driven rather than demand led.
Values haven't exactly dropped like an Italian centre-forward in the penalty box, but most people carriers are heavy depreciators and the SEAT (which lacks the kudos of the VW badge) has suffered more.
Yet anyone with a basic understanding of the used-car trade would spot that some notoriously bad depreciators are conspicuous by their absence from the A&L list - such as the Kia Clarens and Mentor, Daewoo Leganza, Fiat Marea, and Hyundai Sonata.
And the Audi A4 range, entire Porsche line-up, Mercedes SLK/CLK and E-class plus the BMW3-Series are all desperately slow depreciators.
Audi's stunner has already caused a bow-wave of early orders and, given that the old model retained its value like a Picasso, the hugely improved A4 cabrio could become one of the slowest depreciators around.
6i 16V Life were the biggest depreciators by percentage, losing 55 and 54 per cent in six months.