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Depreciation is the value by which fixed assets are deemed to have been "used up" during the course of a year. For example ICT equipment may be deemed to have a useful life of 3 years, in which case the rate of depreciation charged is 33.3%. The charge is set within the income and expenditure statement, and the balance sheet value of the asset is reduced. There are varying methods of charging depreciation, for example straight line, and it is a responsibility of the governing body to set the depreciation rate within the Fixed Asset Policy.