Definition
Depreciation represents the expensing of a long-term asset over its useful life and is related to the basic accounting principle of matching revenue and expenses for the financial period. Depreciation charges for the current financial year only should be shown as expenditure. Where intangible assets are amortised (such as with some private hospitals) this should also be included in recurrent expenditure.
Components
Data Element
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Data Element Concept (this item)Establishment—recurrent expenditure (depreciation)
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Object ClassEstablishment
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PropertyRecurrent expenditure
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Conceptual DomainNone
Comments
Context:
Health expenditure:
This metadata item has been retained for national minimum data sets because of its significance for the private sector. Current period depreciation charges form a significant component of expenditure for any health establishment whose financial statements are based on accrual accounting.
References
Related content
| Relation | Count |
|---|---|
| Data Elements implementing this Data Element Concept | 1 |