Depreciation

From Reuters Financial Glossary

1. Depreciation is an accounting measure that records the loss of value of an asset as a result of usage, the passage of time, or obsolescence. Depreciation is applied only to tangible assets, such as property and machinery. 2. The loss in value of a currency, usually through the forces of supply and demand in the open market. In contrast with a devaluation, which is an administered downward change in a currency rate.

See also: Amortization, Depletion