Depreciation charge

Financial reporting - tangible fixed assets.

Accounting depreciation spreads the cost of a long-term tangible asset over its total life.

The accounting charge for depreciation reflects:

• the estimated periodic cost to a business
• of a physical capital asset
• spread over its estimated useful economic life.

Also known as depreciation expense.

See also

• Accruals accounting
• Accumulated depreciation
• Amortisation
• Appreciation
• Assets
• Capital allowances
• Capitalisation
• Cost
• Depreciation
• EBITDA
• Net book value
• Property, plant and equipment
• Provision for depreciation
• Reducing balance
• Straight line
• Sum of the digits
• Tangible asset
• Tax depreciation
• Writing down allowance