depreciation

Language: en

🇺🇸 /dɪˌpriːʃiːˈeɪʃən/

📖 Definitions

  1. noun
    A decrease in the value of an asset over time, typically due to wear and tear, obsolescence, or age, used in accounting to allocate the cost of a tangible asset over its useful life.; A decline or reduction in the value of a currency relative to other currencies in a floating exchange rate system.; The act of belittling or disparaging someone or something; the expression of a low opinion.; A general decline in the market value or purchasing power of something.; In tax law, the systematic allocation of the cost of a capital asset as a deductible expense over its estimated useful life.; The amount by which an asset's value has decreased during a given period.

🔗 Details

Word forms

uncountable

Collocations

depreciation ratedepreciation expenseaccumulated depreciationdepreciation allowancestraight-line depreciationdepreciation of currency

Derivatives

depreciatedepreciatorydepreciabledepreciativedepreciator

Synonyms

devaluationdeclinedeteriorationdebasementerosiondiminution

Antonyms

appreciationincreasegrowth

Commonly confused

deprecation
EN: 'Deprecation' means expressing disapproval or belittling; 'depreciation' means a decline in monetary value or worth.
devaluation
EN: 'Devaluation' typically refers to a deliberate official reduction in a currency's value; 'depreciation' refers to a gradual or market-driven loss of value.

Spelling tips

EN: Do not confuse 'depreciation' (loss of value) with 'deprecation' (expression of disapproval). Note the '-ci-' in the middle: de-pre-ci-a-tion.

💬 Examples

  1. The company recorded $50,000 in depreciation on its machinery this fiscal year.

  2. The depreciation of the dollar against the euro made American exports more competitive.

  3. His constant depreciation of her achievements undermined her confidence.

  4. The depreciation of real estate prices in the area alarmed local homeowners.

  5. The IRS allows businesses to claim depreciation as a tax deduction on qualifying property.

  6. The annual depreciation on the vehicle was calculated at $3,000 using the straight-line method.