Valuation of Plant & Machinery – Depreciation & other Terminology Page 3 of 40 Sanjay Patel : +91 96246 69492 :
[email protected] Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, passage of time or obsolescence through technology and market changes. Depreciation is one of the expenditure debited to profit and loss account. It is non-cash expenses. Purpose of Depreciation: Accounting & Tax purpose