Characteristics of Depreciation

On the basis of the general meaning of Depreciation and its accounting concept, we can outline the characteristics of Depreciation as:
Depreciation is a gradual but continuous fall in book value of fixed assets.
Depreciation in accounting is a process of allocating the depreciable cost (cost minus scrap value) over the estimated useful life of the fixed assets.
Depreciation arises directly through the deterioration because of the use and indirectly through obsolescence.
Depreciation is not a substitute for repairs. In fact Depreciation is provided along with repairs and maintenance expenses.
Depreciation charge is not an exact amount but based on estimate.
It is purely an internal transaction and it has no outside connection.
It has nothing to do with the physical deterioration of the fixed asset.
It is related to tangible fixed assets only and not to the current assets.
It is a charge against profits.
It is not a source of funds for the replacement of an asset.
Total Depreciation cannot exceed its depreciable value (cost less scrap value) or original cost where scrap value is nil.
It has no relationship with the market value of an asset.