Börsenlexikon: Depreciation

Depreciation is used in business accounting to record scheduled or unscheduled reductions in the value of assets. Depreciation corresponds to the loss in value of company assets (fixed assets and current assets) within a period of time. The loss in value can be caused by general reasons such as aging and wear and tear, or by special reasons such as accidental damage or price erosion. Depreciation is usually determined from a business point of view and - taking into account the special features of commercial law and tax law - taken into account as an expense in the determination of profits.