Definition, Explanation and Characteristics of “Depreciation” or “Accounting Depreciation”: Learning Objectives: Define and explain the terms “depreciation” or “accounting depreciation”. The value of assets gradually reduces on account of use. Such reduction in value is known as depreciation. Different authors have given different definitions
Depreciation is the gradual permanent decrease in the value of an asset from any cause.
Depreciation may be defined as the permanent continuous diminution in the quality, quantity or value on an asset