Accumulated Depreciation

I. Formal Definition

The cumulative depreciation expense recorded against a tangible asset since its acquisition, presented as a contra-asset that reduces the gross carrying value to net book value. Accumulated depreciation is reconciled to the asset register and to depreciation expense recognised in the period. The federation requires accumulated depreciation to be reported by major asset category with a roll-forward showing additions, disposals, and impairment charges per MEV-Annex:4.1. Asset retirement obligations are tracked separately from accumulated depreciation.

II. Etymology

A standard term of double entry asset accounting; the contra-asset construction stabilised in early twentieth century industrial practice.

III. Federation Usage

Federation members reconcile accumulated depreciation to the fixed asset register and to depreciation expense. Material disposals or impairments are footnoted in the quarterly disclosure under MEV-Annex:4.1.

IV. Related Terms

• depreciation
• tangible-asset
• capex
• amortization

V. Authoritative Citations

• UFMS-001:3.1UFMS Article III - Asset Reporting
• MEV-Annex:4.1MEV Annex IV - Accumulated Depreciation

VI. Citation in BibTeX

@misc{ifo4_glossary_accumulated_depreciation,
  title        = {{Accumulated Depreciation}},
  author       = {{IFO4 Federation Editorial Board}},
  howpublished = {{IFO4 Federation Glossary, slug \texttt{accumulated-depreciation}}},
  year         = {2026},
  url          = {https://ifo4.org/glossary/accumulated-depreciation},
  note         = {Category: Capital; key: AccumulatedDepreciation}
}

VII. Challenge This Definition

Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.