What is Depreciation Expense?
Depreciation Expense The systematic allocation of the cost of a tangible fixed asset over its useful life, in accordance with IAS 16 and ASC 360, recognized as an operating expense.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Depreciation Expense” Used in Practice?
Depreciation expense is calculated annually for property, plant, and equipment based on the straight-line or other accepted methods.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Depreciation Expense?
The systematic allocation of the cost of a tangible fixed asset over its useful life, in accordance with IAS 16 and ASC 360, recognized as an operating expense.
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