Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Depreciation
« Back to Glossary IndexCategory: Accounting and Finance
Depreciation refers to the systematic allocation of the cost of a tangible asset over its useful life. Depreciation is an accounting method used to allocate the cost of a long-term or capital asset, such as machinery, buildings, or vehicles, over its estimated useful life. This allocation of costs helps match the expense of using the asset with the revenue it generates over time. There are various methods to calculate depreciation, including straight-line depreciation, declining balance depreciation, and units-of-production depreciation. The choice of method depends on factors such as the nature of the asset and its expected pattern of use.
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