Akademik

depreciate

To allocate the purchase cost of an asset over its life. Bloomberg Financial Dictionary

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depreciate de‧pre‧ci‧ate [dɪˈpriːʆieɪt] verb

1. [intransitive] to decrease in value over a period of time:

• If you don't get your car serviced regularly, it will depreciate quickly.

2. [intransitive, transitive] FINANCE if a currency depreciates, it goes down in value compared to the currencies of other countries:

• People will switch to dollars, depending on how much they think the exchange rate will depreciate.

• Mexico's central bank was committed to depreciating the peso by no more than 6.6% against the dollar.

3. [transitive] ACCOUNTING TAX LAW to reduce the value of a fixed asset over the particular period of time allowed under tax law:

• Other fixed assets are depreciated on a straight line basis at annual rates which vary according to the class of asset.

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depreciate UK US /dɪˈpriːʃieɪt/ verb

► [T] ACCOUNTING, TAX when a company depreciates an asset, such as a piece of equipment, it reduces its value in its accounts over a certain length of time: »Machine tools are typically depreciated over seven years.

→ Compare AMORTIZE(Cf. ↑amortize)

► [I or T] MONEY, FINANCE if a currency depreciates or is depreciated, it loses value in comparison with other currencies: »The government allowed the currency to depreciate by 4% to 5% a year to boost Indonesia's export competitiveness.
»In the short term the euro is expected to depreciate against the dollar.

→ Compare APPRECIATE(Cf. ↑appreciate)

► [I] to lose value: »The value of a real antique increases over the years, but a reproduction immediately depreciates in value.

→ Compare APPRECIATE(Cf. ↑appreciate)

Financial and business terms. 2012.