1.
depreciation expense; depreciation cost
The portion of a fixed asset's cost charged as an expense in a given accounting period. It appears on the income statement even though no cash changes hands that year.
減価償却 (depreciation) + 費 (expense). The yearly charge that spreads an asset's cost over its useful life.
Common collocations
- 減価償却費を計上する: to record depreciation expense
- 減価償却費が発生する: depreciation expense arises
- 年間の減価償却費: annual depreciation expense
Usage
Because no cash actually leaves the company, this figure is added back when calculating cash flow. It is a standard line item in 損益計算書 (income statements) and appears constantly in business reporting.