Depreciation of assets: Meaning and Definition

What does depreciation of assets mean?

Depreciation of assets is another name for Asset Depreciation. Writing down the value of machines, vehicles, and buildings over their useful life - with two different rule books for accounting and tax.

The two names mean the same thing. You will see "depreciation of assets" in some ledgers, reports and contracts and "Asset Depreciation" in others. The full entry covers how it works, with examples.

Read the full definition of Asset Depreciation

Topics

Financial reporting

From the glossary

Related terms.

Financial reporting Asset Depreciation Writing down the value of machines, vehicles, and buildings over their useful life - with two different rule books for accounting and tax. Also called depreciation, fixed asset depreciation, depreciation of assets Financial reporting Amortization Spreading the cost of intangible assets (patents, software, licences) over the years they generate value - depreciation's less-talked-about sibling. Also called amortisation Financial reporting Balance Sheet A financial statement that presents a company's total assets, liabilities, and shareholders' equity at a specific point in time. Also called statement of financial position, statement of assets and liabilities Financial reporting Accrual Accounting Recording revenue when you earn it and expenses when you incur them - not when cash moves. The accounting standard every Indian company must follow. Also called accrual basis of accounting, accrual method, mercantile system of accounting Audit and controls Financial Audit An independent examination of a company's financial statements to provide assurance on their accuracy and true and fair view. Also called statutory audit, audit of financial statements, external audit Due dates and calendars Financial Year (FY) The 12-month accounting period from April 1 to March 31 used for tax filings, financial reporting, and statutory compliance in India. Also called accounting year, tax year

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