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जब हम depreciation कह रहे होते हैं तो हम किसी assets की value में होनेवाली कमी को कह रहे होते हैं जो कई कारणों से होते हैं. 
उपयोग के कारण, समय के साथ जब कोई assets पुरानी हो जाती है, टूट – फूट के कारण, जब वह out of fashion हो जाये, Technology के बदल जाने या upgrade हो जाने से
मान लीजिये अपने व्यवसाय के संचालन हेतु आपने कोई नयी मशीन खरीदी और उसका उपयोग आपने कभी नहीं किया. वह ऐसे ही रखी हुई है फिर भी उसकी value में कमी आएगी क्योंकि machine एक ऐसी वस्तु है जिसकी technology समय के साथ upgrade होती रहती है.

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