Finance
Depreciation policy
Formal definition
Depreciation policy is a charity finance term for valuing and tracking physical or digital assets over their useful life while accounting for value reduction and ownership.
What this actually means for you
Use Depreciation policy to guide live decisions: record new purchases on the asset register, apply depreciation rates consistently, and check for value loss annually, with ownership and reporting agreed at month-end and before trustee reporting cycles.
Example: In a live quarterly cycle, Depreciation policy is applied like this: the facilities manager updates the asset register after a laptop rollout and finance calculates the monthly depreciation charge. The team then records the decision trail in policy packs, approval logs, and team guidance.
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