Asset Depreciation Definition

In accountancy, asset depreciation is the term for two aspects with the same concept: the decrease in value of assets and the allocation of the cost of assets to periods that the assets are used. Asset depreciation is traditionally used, and many businesses can have a policy that items on the certain value are written off over a specific period according to the item and their application, this is frequently shown in the business accounts. You need to depreciate the advantage over its useful lifetime, there just isn’t much point depreciating a car over 75 decades, as it becomes useful to this company for more in comparison with 5/6 years before it had been uneconomical to run and repair.