More terms
Depreciation
The allocation of a tangible fixed asset's cost over its estimated useful life, reducing book value while recognizing expense.
What traders should verify
For Depreciation, identify the statement, reporting period, accounting policy, footnote support, comparable periods, and cash-flow effect.
Do not conflate
Depreciation is an accounting measure or classification; it is not automatically cash, fair value, liquidity, or current market value.
Primary source
SEC definitionSource boundary: this glossary reflects SEC staff views and is not a Commission rule, regulation, or statement. Check the linked source for current wording and legal context.