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Generally the cost is allocated, as depreciation expense, among the periods in which the asset is expected to be used.
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In accountancy, depreciation refers to two aspects of the same concept: The decrease in value of assets (fair value depreciation) The allocation of the cost of assets to periods in which the assets are used (depreciation with the matching principle) Depreciation is a method of reallocating the cost of a tangible asset over its useful life span of it being in motion.
Businesses depreciate long-term assets for both tax and accounting purposes.