# Asset Depreciation

**IRI:** https://folio.openlegalstandard.org/R8sskZUTqRM7drGfBsKJGDp

## Labels

**Preferred Label:** Capital Consumption

**Alternative Labels:**

- Valuation Loss
- Value Reduction
- Write-Down

## Definition

Asset Depreciation is the systematic decrease in the recorded value of an asset over time, typically due to wear and tear, obsolescence, or the passage of time. This accounting method allocates the cost of tangible assets over their useful life, reflecting the reduction in the asset's economic value.

## Sub Class Of

- https://folio.openlegalstandard.org/RBHI06ZAbtF2eveFVFadYwb

**Deprecated:** False