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For example, a depreciation expense of per year for five years may be recognized for an asset costing The business then records depreciation expense in its financial reporting as the current period's allocation of such costs. In accountancy, depreciation refers to two aspects of the same concept: Therefore, UBS is no longer an acronym but is the company's brand.

Depreciation is any method of allocating such net cost to those periods in which the organization is expected to benefit from use of the asset.

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This is usually done in a rational and systematic manner. If an asset is expected to produce a benefit in future periods, some of these costs must be deferred rather than treated as a current expense.

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