What does a 'depreciation report' in Workday indicate?

A depreciation report in Workday provides information about the reduction in value of fixed assets over time. This concept is rooted in accounting principles, where depreciation reflects how assets lose value as they age or as they are used in business operations. This decline in value is important for financial reporting and tax purposes, as it affects the company's balance sheet and profit and loss statements.

The report typically shows the calculated depreciation expense for a specific period, the accumulated depreciation on various fixed assets, and the current book value of those assets. This comprehensive view helps organizations manage their asset portfolio effectively and make informed financial decisions. In summary, a depreciation report is a crucial tool for tracking the financial impact of fixed assets over time, ensuring that financial records accurately reflect the company's asset value and depreciation expenses.