Depreciation (as calculated in business accounts) is a method of allocating the costs of past expenditures on fixed assets over subsequent accounting periods; note that the depreciation methods favored in business accounting and those prescribed by tax authorities almost invariably deviate from the concept of consumption of fixed capital employed in the SNA and so the term "consumption of fixed capital" is used in the SNA to distinguish it from "depreciation" as typically measured in business accounts.

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