depreciation charge

6.7

An amount companies record each year as an expense to show equipment loses value

noun
/dɪˌpriːʃiˈeɪʃən tʃɑrdʒ/

Specialized

: cargo por depreciación

The depreciation charge for the machinery was significant.

Examples

Every year, a depreciation charge is included in the financial statements to reflect the machinery's wear and tear.
Ignoring the depreciation charge could significantly overstate the firm's net income.
The company recorded a depreciation charge of $5,000 for its equipment this year.
Each year, the depreciation charge reduces the asset's value.
The accountant recorded a monthly depreciation charge to reflect the equipment's declining value.
Each year, the company calculates a depreciation charge for its vehicles to account for wear and tear.
A significant depreciation charge reduced the profit reported in the financial statements.

Synonyms

depreciation

vsdepreciation charge

Specialized

15 6.3

Loss of value of something like a car as it gets older or wears out

is the periodic money expense recorded to show that loss

How Large

depreciation charge

Specialized

6.7

minor expense

1 3.0

Surface Forms

depreciation charge singular

depreciation charges plural

Morphology

depreciation + charge

The phrase is compositionally built from 'depreciation' (decline in value) and 'charge' (an amount recorded or levied), so a learner who knows both words can infer it refers to an amount recorded as an expense to reflect loss of value. Although this is an accounting term and somewhat technical, the overall meaning follows directly from the constituents and parallels constructions in other languages, making it predictable to learners.

Etymology

The term depreciation charge comes from a simple picture of things slowly losing value: depreciation is that slow 'wearing down' of a machine or building, and a charge is the money a company records in its books. So a depreciation charge is the amount a company writes down each period to show an asset 'losing value' over time.