# depreciation

/dɪˌpɹiʃiˈeɪʃən/ (US) · /dɪpɹˌiːʃɪˈeɪʃən/ (UK)

Source: https://englishreference.com/word/depreciation
Updated: 2026-08-08

## Senses

### 1. loss of value over time

noun · CEFR B2

the way something loses value as it gets older and is used, like a car or a computer.

For teachers: the gradual decrease in the economic value of an asset due to wear and tear, age, or obsolescence.

- The value of a new car suffers from rapid depreciation as soon as you drive it home.
- The company accounted for the depreciation of its manufacturing equipment over a ten-year period to reflect its diminishing utility.

Usage: Uncountable when referring to the general process; countable when referring to a specific calculated amount.

### 2. accounting method

noun · CEFR C1 · Technical

a way for businesses to spread the cost of an expensive item over many years.

For teachers: the systematic allocation of the cost of a tangible asset over its useful life.

- The accountant calculated the annual depreciation to help lower the company's tax bill.
- Straight-line depreciation remains the most common method for distributing the cost of office furniture across several fiscal years.

Usage: Often used with the verbs 'calculate', 'record', or 'allow for'.

Teaching tip: In technical accounting, distinguish this from 'impairment', which refers to a sudden, unexpected drop in value.

### 3. disparagement

noun · CEFR C2 · Formal · Literary

the act of saying that something is not important or has little value.

For teachers: the act of belittling or representing something as being of little worth.

- His constant depreciation of my hard work made me want to quit the project.
- The critic's depreciation of the novel's structure seemed unfair given the experimental nature of the prose.

Teaching tip: This sense is much rarer than the financial one and is typically found in formal writing or older literature.

## Examples

- The car's rapid depreciation surprised the new owner.
- The accounting department calculates the annual depreciation of all office equipment to ensure accurate tax filings.
- While some assets like real estate may appreciate, most industrial machinery is subject to steady depreciation, eventually reaching a residual value that reflects its worth as scrap metal.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.