Define: Appreciation

Business, Legal & Accounting Glossary

Definition: Appreciation

What is the dictionary definition of Appreciation?

Dictionary Definition


  1. A just valuation or estimate of merit, worth, weight, etc.; recognition of excellence.
  2. Accurate perception; true estimation; as, an appreciation of the difficulties before us; an appreciation of colors.
    His foreboding showed his appreciation of Henry’s character. —J. R. Green.
  3. A rise in value;—opposed to depreciation.


Full Definition of Appreciation

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.


Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Appreciation. Payroll & Accounting Heaven Ltd. April 09, 2020
Chicago Manual of Style (CMS):
Appreciation. Payroll & Accounting Heaven Ltd. (accessed: April 09, 2020).
American Psychological Association (APA):
Appreciation. Retrieved April 09, 2020, from website:

Definition Sources

Definitions for Appreciation are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 13th February, 2020