Depreciation is a significant accounting parameter which allocates the value of a tangible asset over its useful life. It’s a non cash expenditure which diminishes the value of an asset as a result of time, wear and tear or getting outmoded. The value of assets gets reduced or depreciates over time that depreciated or deflated value is termed as depreciation which has significant accounting and taxation laws. It is basically allocation of cost of a tangible asset over its useful life.

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