Depreciation
An annual deduction for a portion of the value or property, plant, and equipment. |
Similar financial terms
Accelerated depreciationAny depreciation method that produces larger deductions for depreciation in the early years of a project's life. Accelerated cost recovery system (ACRS), which is a depreciation schedule allowed for tax purposes, is one such example.
Sum-of-the-years-digits depreciation
The sum-of-the-years-digits (SOTYD) depreciation is a method of accelerated depreciation used in the US.
Straight line depreciation
An equal dollar amount of depreciation in each accounting period.
