Depreciation provision

The depreciation provision is the amount of depreciation that has cumulatively been charged to the profit and loss account, relating to a fixed asset, from the date of its acquisition. Fixed assets are stated in the balance sheet at their net book value (or written down value) which is usually their historical cost less the cumulative amount of depreciation at the balance sheet date. (See also net book value)


reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u