Definition: Appreciation is an accounting treatment reflecting
- the increase in value of a tanglible asset (fair value appreciation).
- the allocation of the benefits of a tangible asset to the periods in which it is used (traditional appreciation).
The precise methods for calculating A differ per jurisdiction (country), accounting standard, and asset type. Accounting rules may require that an impairment charge or expense be recognized if the value of an asset increases suddenly.
A is the opposite of depreciation.
© 2019 MBA Brief - Last updated: 19-8-2019 - Privacy | Terms