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Depreciation
05.07.2013 09:45

Depreciation

1) The practice of reducing the book value of an asset (eg a vehicle) over a period of time to indicate wear and tear and possible obsolescence.

May be by ‘straight line’ method (ie where equal amounts are charged over a period of, say, five or ten years), or loaded to increase/ decrease over a period. New cars, for example, generally depreciate by up to 50 per cent as soon as they are driven from the showroom.

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.63 (288 p.)


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