減価償却

• Reading: げんかしょうきゃく
• Romaji: genka-shokyaku
• Kanji breakdown: 減 (gen) — decrease, reduce; 価 (ka) — value, price; 償 (sho) — repay, compensate; 却 (kyaku) — withdraw, dismiss
• Pronunciation: /ɡen.ka.ɕoː.kʲa.kɯ/

Meaning

Depreciation; amortisation. The accounting process of allocating the cost of a tangible or intangible asset over its useful life.

A critical concept in accounting and corporate finance. Fixed assets such as machinery, vehicles, and buildings lose value over time; 減価償却 spreads that cost over the asset's estimated useful life as a yearly expense. The methods used (straight-line, declining balance) affect taxable income and reported profit. Abbreviated informally as 償却 in business conversation.

Examples

1. 工場の設備は耐用年数に応じて減価償却費として計上される。 Factory equipment is recorded as depreciation expense according to its useful life.
2. 減価償却により、設備投資の費用負担を複数年度に分散できる。 Through depreciation, the cost burden of capital investment can be spread over multiple fiscal years.
3. 税務申告では減価償却の計算方法が利益に大きく影響する。 In tax filings, the method used to calculate depreciation has a significant impact on profits.

Usage Guide

Context: accounting, tax, corporate finance, asset management

Tone: technical

Origin & History

Compound of 減価 (genka, decrease in value) and 償却 (shōkyaku, repayment/writing off). 償却 itself derives from 償 (to compensate/repay) and 却 (to withdraw/dismiss), conveying the idea of systematically writing off a value.

Cultural Context

Era: Modern

Generation: Business professionals

Social background: Finance/Accounting