Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.



An annual tax deduction that allows for the loss of value of a capital asset, such as a business vehicle or real estate improvement, due to wear over a period of years.

See Also

Adjusted basis, capital asset, capital expenditure.


The amount of the deduction each year depends on the applied depreciation method that is allowed in the tax code for the asset. Assets can either be expensed or capitalized. If expensed, the expense appears on the profit & loss statement as an expense. If capitalized, the amount appears as an asset on the balance sheet and then as “depreciation” on the profit & loss statement.