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 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.

[

See also

• investment
• gratitude
• Value investing
• Marketing

[

External links

• Yee, Kenton K., "Opportunities Knocking: Residual Income Valuation of an Adaptive Firm" . Journal of Accounting, Auditing and Finance, Vol. 15, No. 3, pp. 225-266, Summer 2000. SSRN 239368

BCUZ.com FACTS Encyclopedia content is licensed under the GFDL as approved by Wikipedia.
For more information review our copyright contact and privacy policy. © 1996 - BCUZ.COM - We have all the FACTS you need about Small Business Financing, Behavior Disorder, Having Too Many Bills, Needing Cash Fast, Structured Settlements, Frequent Flier Programs, Top Steak Houses, The Mayan Indians, Norfolk and Suffolk England, Growing Longer Hair and a full reference English Encyclopedia and Spanish Encyclopedia.Privacy Policy