Business News›Definitions›Economy›Depreciation
Categories
- Glossary
- Economy
- Insurance
- Equity
- Transportation
- sports
- Space Technology
- Entertainment
- Astronomy
- Analytics
- Commodity
- Education
- Finance
- Human-Resource
- Mutual Fund
- Mathematics
- Real-Estate
- Marketing
- Security
- Shipping
- Retail
- HR
- Software-Development
- Testing
- Budget
Suggest a new Definition
Proposed definitions will be considered for inclusion in the Economictimes.com
Economy
- PREV DEFINITION
Demonetization
Read More
- NEXT DEFINITION
Depression
Depression is defined as a severe and prolonged recession. A recession is a situation of declining economic activity.
Read More
Definition: The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation.
Description: Depreciation, i.e. a decrease in an asset's value, may be caused by a number of other factors as well such as unfavorable market conditions, etc. Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time. Opposite of depreciation is appreciation which is increase in the value of an asset over a period of time.
Accounting estimates the decrease in value using the information regarding the useful life of the asset. This is useful for estimation of property value for taxation purposes like property tax etc. For such assets like real estate, market and economic conditions are likely to be crucial such as in cases of economic downturn.
Also See: Accretion, Accelerated Depreciation, Appreciation, Economic Depreciation, Economic Life
Learn more about Depreciation
Read More News on
- DEPRECIATIONMARKETPROPERTYTAX
- CURRENCYREAL ESTATETAXATION
- PREV DEFINITION
Demonetization
Read More
- NEXT DEFINITION
Depression
Depression is defined as a severe and prolonged recession. A recession is a situation of declining economic activity.
Read More
Related Definitions
- Asset Turnover RatioAsset turnover ratio is the ratio between the value of a company’s sales or revenues and the value of its assets. It is an indicator of the efficiency with which a company is deploying its assets to produce the revenue. Thus, asset turnover ratio can be a determinant of a company’s performance. The higher the ratio, the better is the company’s performance. Asset turnover ratio can be different froAusterity economic growth of country is determined by factors such as Capital structure, Human resources, Natural resources and revenue generation of businesses operating within the nation. A decline in the economic development can impact all the four factors of a government system. One of the main contributors of decline in the economic system is debts. A country borrows money from creditors, with the vieBailoutBailout is a general term for extending financial support to a company or a country facing a potential bankruptcy threat. It can take the form of loans, cash, bonds, or stock purchases. A bailout may or may not require reimbursem*nt and is often accompanied by greater government oversee and regulations.The reason for bailout is to support an industry that may be affecting millions of people inBalance Of PaymentAccording to the RBI, balance of payment is a statistical statement that shows1. The transaction in goods, services and income between an economy and the rest of the world,2. Changes of ownership and other changes in that economy’s monetary gold, special drawing rights (SDRs), and financial claims on and liabilities to the rest of the world, and3. Unrequited transfers.Description: The tran
- Bank RateBank rate is the rate charged by the central bank for lending funds to commercial banks. Description: Bank rates influence lending rates of commercial banks. Higher bank rate will translate to higher lending rates by the banks. In order to curb liquidity, the central bank can resort to raising the bank rate and vice versa.Also See: Base Rate, Call Money RateBarter the hard currency came into existence, the most common form of trade was bartering. Barter Systemdates back to the old time when there was no money. The only way to buy goods was to exchange them with personal belongings of similar value. For example- A farmer gives his cattle in exchange for some land, and so on. In simple words, any exchange of goods and services for other goods and services wiBase RateBase rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers. Description: Base rate is decided in order to enhance transparency in the credit market and ensure that banks pass on the lower cost of fund to their customers. Loan pricing will be done by adding base rate and a suitable spread depending on the credit risk premium.AlsBasel IiiThe third Basel accord or Basel-III is the cornerstone of banking supervision in the world. Framed by a committee of elite central bankers, the accord provides the guidelines for prudent supervision of banks all over the world and sets the standard for such supervision.Description: Basel-III is third in the series of accords following Basel-I and Basel-II. It was released in December, 2010, in
- BrexitIt is an abbreviation for the term “British exit”, similar to “Grexit” that was used for many years to refer to the possibility of Greece leaving the Eurozone. Brexit refers to the possibility of Britain withdrawing from the European Union (EU). The country will hold a referendum on its EU membership on June 23.Description: Why the Call for Referendum?When David Cameron became the prime miBrics the BRICS?BRICS is an acronym that started as BRIC in 2001, coined by Jim O’Neill (a Goldman Sachs economist) for Brazil, China, India, and Russia. Later in 2010, South Africa was added to become BRICS. Goldman Sachs claimed that the global economy will be dominated by the four BRIC economies by 2050. The main reason for such a claim was that China, India, Brazil, Russia, and South Africa were ra
Related News
- A bite of Apple brings 9X gains to Tata Electronics' revenue muscleIn the first full year of operations, Tata Electronics saw a ninefold increase in sales, driven by the acquisition of Wistron's iPhone assembly plant. The company posted a consolidated income of ₹3,802 crore in FY24, up from ₹401 crore in the previous year. However, it reported a net loss of ₹825 crore due to high expenses.
- Glenmark Q1 Results: Net profit doubles to Rs 340 croreGlenmark Pharma net profit doubled to Rs 340 crore crore in Q1FY25 led by robust sales growth in India and Europe and reduction in finance, depreciation and ammortisation costs.
- Mazgaon Docks Q1 net profit more than doubles to Rs 696 croreMazagon Dock Shipbuilders reported a 121.45% jump in net profit for the quarter ending June to Rs 696.10 crore, helped by sharply lower costs.
- Rupee slips to record closing low, tracking decline in Asia FXThe Indian rupee slipped to its weakest closing level on Monday, pressured by a decline in its Asian peers while likely intervention by the Reserve Bank of India ensured the currency did not weaken more.
- RBI asks top banks to refrain from large trading bets against rupee: ReportThe Reserve Bank of India advised major banks to stop increasing their positions against the rupee, which had reached record lows. RBI officials contacted the banks to prevent the rupee from breaching the 84/$ level. The central bank also intervened by selling $1.5 billion in the non-deliverable forward market.
- Affle Q1 Results: Profit jumps 31% to Rs 86 croreTechnology firm Affle (India) has reported 30.8 per cent rise in consolidated net profit at Rs 86.59 crore for June quarter FY25. It had clocked a net profit of Rs 66.17 crore in the year-ago period.
- Sun Pharma Q1 net profit jumps 40% to Rs 2,836 crore in Q1FY25Sun Pharma reported a 40% year-on-year (YoY) jump in net profit to Rs 2,836 crore in Q1FY25 led by higher sales growth in domestic formulation, emerging markets and global specialty portfolio.
- Nuvoco Vistas’ profit slumps by 80% in June quarterNuvoco Vistas Corp, a leading producer of cement in east India, saw its consolidated net profit slump by more than 80% on year to 2.84 crore rupees in the June quarter, weighed down by lower volumes and weaker prices during the quarter.
- Balu Forge Q1 Results: Net profit rises over two-fold to Rs 34.16 crPrecision engineering and manufacturing firm Balu Forge on Monday said its on-year net profit grew over two-fold to Rs 34.16 crore in the April-June quarter this year, driven by higher income. The company had posted a net profit of Rs 16.67 crore in the April-June period of FY24.
- Cipla net profit jumps 17.4% to Rs 1,178 crore in Q1FY25Drug maker Cipla reported a 17.4% year-on-year (YoY) jump in net profit to Rs 1,178 crore in Q1FY25, led by strong US, India and South Africa sales momentum.
Load More
Trending DefinitionsRailways Budget 2024Interim Budget 2024Budget 2024 New Tax RegimeIncome Tax in Budget 2024Debt fundsSensexNiftyRepo rateMutual fundGross domestic productData miningAdvertisingProductMonopolyCryptographyDepreciation