Actual Depreciation
There are two general causes for actual depreciation, physical depreciation and functional depreciation. Both can happen at the same time or they may happen separately.
PHYSICAL DEPRECIATION
Physical depreciation literally means that the asset is wearing out (for example, wear and tear, corrosion, shock, vibration, abrasion, and such), and it can't do its job as well as it used to. The more it's used, the more it wears out. Physical depreciation also includes natural deterioration such as rust, corrosion, rotting, decomposition, and so on. Deterioration doesn't depend on how much the asset is used; deterioration would happen whether the asset was used or not.
Software isn't a physical thing, so it can't be affected by physical ...
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