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Depreciation: meaning, definitions and examples

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depreciation

 

[ dɪˌpriːʃiˈeɪʃən ]

Noun
Context #1 | Noun

accounting

A reduction in the value of an asset over time, usually due to wear and tear or obsolescence.

Synonyms

decrease, devaluation, diminution

Examples of usage

  • The company's financial statements showed a significant depreciation in the value of its machinery.
  • The depreciation of the building was calculated at 2% per year.
Context #2 | Noun

economics

A decline in the value of a currency in relation to other currencies.

Synonyms

devaluation, fall, weakening

Examples of usage

  • The depreciation of the local currency led to an increase in the cost of imported goods.
  • The government implemented measures to prevent further depreciation of the currency.
Context #3 | Noun

general

A decrease or loss in value, quality, or importance.

Synonyms

decline, devaluation, diminishment

Examples of usage

  • The depreciation of his reputation was a result of the scandal.
  • The depreciation of the company's stock price was a cause for concern.

Translations

Translations of the word "depreciation" in other languages:

🇵🇹 depreciação

🇮🇳 मूल्यह्रास

🇩🇪 Abschreibung

🇮🇩 penyusutan

🇺🇦 амортизація

🇵🇱 amortyzacja

🇯🇵 減価償却 (genka shōkyaku)

🇫🇷 amortissement

🇪🇸 depreciación

🇹🇷 amortisman

🇰🇷 감가상각 (gamgasang-gak)

🇸🇦 استهلاك (istihlak)

🇨🇿 odpis

🇸🇰 odpis

🇨🇳 折旧 (zhéjiù)

🇸🇮 amortizacija

🇮🇸 afskrift

🇰🇿 амортизация

🇬🇪 ამორტიზაცია (amortizatsia)

🇦🇿 amortizasiya

🇲🇽 depreciación

Etymology

The term 'depreciation' has its roots in the Latin word 'depretiare', which means 'to lower in price'. The concept of depreciation has long been used in accounting and economics to reflect the decrease in value over time. In the context of assets, depreciation is a crucial aspect of financial reporting to accurately reflect the true value of an asset. In economics, currency depreciation can have significant effects on trade balances and inflation rates.

See also: depreciative, depreciatory.

Word Frequency Rank

With rank #4,500, this word represents useful upper-intermediate vocabulary. Understanding and using it will help you express more complex ideas effectively.