Depreciation

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Depreciation is the gradual and permanent decrease in the value or usefulness of a tangible fixed asset, except land, due to use, expiry of time, obsolescence, accidents, depletion, or fall in market …

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Land is a fixed asset but not subject to depreciation because it has an indefinite life. Depreciation is used for assets that lose usefulness over time, but land does not normally lose its service cap…

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Depreciation is the gradual and permanent decrease in the value of an asset from any cause.

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Depreciation may be defined as the permanent and continuing diminution in the quality, quantity or the value of an asset.

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Fixed assets such as plant, machinery, building, and furniture gradually diminish in value as they get older and become worn out by constant use in business.

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Depreciation is a reduction in the book value of a tangible fixed asset except land. It is permanent, charged regularly, based on allocation of expired cost, treated as a charge against profit, estima…

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Depreciation reduces book value of the asset, but not necessarily its market value. Book value falls in the books of account, while market value may move differently.

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Depreciation is a non-cash expense because it does not involve any cash outflow. It is recorded in accounts to spread the expired cost of an asset over its useful life.