Definition of retirement method of depreciation

manner of fixed asset accounting under which no depreciation expense entry is recorded until the asset is retired from service. At retirement, depreciation expense is debited and the asset account for the retired asset is credited. If the asset has salvage value, the debit to depreciation expense is reduced by this amount and there is a corresponding debit to cash, receivables, or salvage. This method, once popular among public utilities, is now largely discarded.