Depreciation

Depreciation is the fall in the value of assets. In common parlance, depreciation is related to  the value of fixed assets. Although depreciation does also occur in the value of current assets. The discussion herein after will center down lo only fixed assets. 

Authoritative definitions of Depreciation are as follows : 

(a)  "That part of the cost of a fixed assets to its owner which is not recoverable when the asset is finally put out of use by him . . . ." 

                                      - The institute of Chartered Accountants of England and Wales 

(b)  "Depreciation is a measure of the Wellspring out, consumption or other loss of value of a depreciable asset arising from use, flux of time or obsolescence through technology or market changes . . . ." 

                                       -The  Institute of Butchered Accounts of India. 

(c)  Pickles, a noted exponent of accounting methods, has tensed depreciation as permanent  arid continuing definition in the quality, quantity or value of an asset.