What is Net of Depreciation?

Net of depreciation refers to the reported amount of a tangible fixed asset, including all accumulated depreciation charged against it. This information may be reported separately in the balance sheet of a business, where the aggregate amount of fixed assets prior to depreciation is stated in one line item, followed by accumulated depreciation, with a third line item combining the two into a “net of depreciation” line item. An example of this presentation appears in the following exhibit, which shows the fixed assets section of a balance sheet.