Depreciation is the process of taking the whole cost of an expensive item you bought for your business out of consideration. But rather than finishing it all in one tax year, you write off parts of it over time. You have more control over your budget when you depreciate assets since you can plan out how much money is written off each year. As a result of use, misuse, or inactivity, an asset gradually loses financial value. Accounting measures the asset's value drop using information about the asset's useful life. The expression refers to an accounting method that allocates the cost of an asset across the asset's anticipated life or useable life. Further details can be found in this Powerpoint.

Vaisakh JP

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