Depreciation

Part of speech: noun

Pronunciation: /dɪˌpɹiːʃɪˈeɪʃən/

Definitions

1. A reduction in the value of an asset, often caused by usage, age, market conditions, or obsolescence, which is reflected in financial reporting
2. The gradual decrease in an asset's value due to factors such as wear and tear or changing market dynamics, impacting its financial representation
3. The decline in the worth of an asset over time, influenced by usage, deterioration, economic conditions, or market shifts, is noted in accounting practices

Etymology: Depreciation began as a Latin verb about price. Its ancestor was "depretiare," formed from "de-" (down, away) and "pretium" (price, value), so the original sense was simply "to lower the price of something" or "to value something lower." The verb passed into Old French as "déprécier," and French then formed the noun "dépréciation," which English borrowed as "depreciation." The word therefore carried the idea of value falling from its very beginning. Its root "pretium" also gave English "price" and "appreciate," so "depreciation" is essentially the opposite of "appreciation," with the same ancient core and the reversing prefix "de-" doing the work.

Synonyms: devaluation, diminution, reduction, decline, fall

Antonyms: appreciation, increase, rise, growth, enhancement