Business, Legal & Accounting Glossary
Appreciation is a term used in accounting relating to the increase in the value of an asset. In this sense, it is the reverse of depreciation, which measures the fall in the value of assets over their normal life-time.
In times of high inflation, appreciation will be common to all balance sheet assets. Generally, the term is reserved for property or, more specifically, land and buildings. In any viable modern economy, such property tends to increase in value over the years – if only because of the scarcity of usable land forces its price in a competitive situation.
Needless to say, there are considerable difficulties in assessing the increase in the value of any particular asset. This is principally because of the variety of interpretations that can be attached to the word value itself and due to the various instruments and methods used in the valuation process.
Noun
An increase in value. Appreciated property is property that has gone up in value since it was acquired.
Appreciation is a term used in accounting relating to the increase in value of an asset. In this sense, it is the reverse of depreciation, which measures the fall in the value of assets over their normal life-time.
Appreciation is a rise of a currency in a floating exchange rate.
In times of high inflation, appreciation will be common to all balance sheet assets. Generally, the term is reserved for property or, more specifically, land and buildings. In any viable modern economy, such property tends to increase in value over the years – if only because of the scarcity of usable land forces its price in a competitive situation. However, this belief has often caused speculative bubbles to arise.
There are considerable difficulties in assessing the increase in value of any particular asset. This is principally because of the variety of interpretations that can be attached to the word value itself and due to the various instruments and methods used in the valuation process.
Appreciation is also a term meaning an expression of gratitude.
Community property
Quasi-community property
Stepped-up basis
Wild Card Exemption
Easement by prescription
Separate property
Property
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This glossary post was last updated: 8th October, 2021 | 0 Views.