Depreciation

In the foreign exchange markets, this means a decline in the value of a currency; eg, “the pound depreciated by 10% against the dollar”. (See also devaluation.) In accounting, this relates to the gradual decline in the value of an asset, due to wear and tear. Companies depreciate their assets over their lifetime; this will show up as a deduction on the income account and a reduction in the value of assets on the balance-sheet.