accrued depreciation


Also found in: Financial, Acronyms.

accrued depreciation

1. The reduction in actual value of property over a period of time, as a result of wear and tear, obsolescence, etc.
2. The accumulated reductions in the stated value of property over a period of time, entered on balance sheets for accounting or tax purposes.
References in periodicals archive ?
Redefining some cost approach terms for clarification will help explain why the order of the deductions for accrued depreciation needs to be rearranged.
The "bottom-line" deduction for curable items means that these deductions should be taken after all other accrued depreciation deductions (i.
One item of accrued depreciation, superadequacy, a form of incurable functional obsolescence, has long been accepted as the first deduction from reproduction cost since it measures the difference between reproduction cost new and replacement cost new.
It is impossible to identify and itemize the accrued depreciation of the existing facility, using a radically different replacement model.
It is difficult, if not impossible, to analyze what part of this accrued depreciation is due to physical wear and tear, and what part is due to style and age obsolescence.
The age/life methods appear most reliable when used to differentiate physical depreciation from the total accrued depreciation derived through the extraction method.
When the total accrued depreciation is subtracted from the cost estimate new, the resulting figure is the depreciated value of the improvements.