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DEPRECIATION - OECD

Statistics Directorate    
French Equivalent: Amortissement - OCDE

Definition:
Depreciation is the loss in value of an asset due to ageing.

Context:
This definition (which is common in the productivity literature) is different from the definition of depreciation, or consumption of fixed capital (CFC) as defined by the 1993 System of National Accounts.

Depreciation in the SNA comprises both the loss in value due to ageing and the effects of foreseen obsolescence.

In the productivity literature, value changes due to obsolescence are reflected in the capital gains/loss term of the user cost formula.

Source Publication:
OECD Productivity Manual: A Guide to the Measurement of Industry-Level and Aggregate Productivity Growth, OECD, Paris, March 2001, Annex 1 – Glossary.

Cross References:
Depreciation - SNA

Hyperlink:
http://www.oecd.org/dataoecd/59/29/2352458.pdf

Version Indicator: OECD

Statistical Theme: National accounts

Created on Tuesday, September 25, 2001

Last updated on Friday, April 25, 2003