Depreciation

Depreciation Definition

Any asset acquired by a company loses value over time. Impairment is caused, for example, by technical wear or technical progress. These impairments must, of course, be recorded (as depreciation), otherwise a 20-year-old machine would still have its original cost in an enterprise.

Various depreciation methods and / or depreciation types are available for recording this impairment. The loss in value of an asset is recognized annually through depreciation and amortized as an expense. Scheduled depreciation is only applied to depreciable property, plant and equipment. The basis for the useful life of an asset is the depreciation table

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