What is Depreciation?

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Depreciation
Depreciation means decrease in the value or decrease in efficiency of asset due to its use.

Depreciation According to International Accounting Standard
IAS-16 says,
The term Depreciation means, the systematic allocation of the cost of a depreciable amount of an asset over its useful life. Goal of depreciation is to offset a reasonable portion of assets' cost against revenue in each period of the assets' useful life.
Is Depreciation just an estimate ?
The use of an estimated useful life is the major reason that depreciation expense is only an estimate. In most cases, the management does not know in advance how long the asset will remain in use.



For Video lecture please click the blow link
https://www.youtube.com/watch?v=hUV_xnsTCHM&t=251s

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