Appreciation is a term used in
accountingrelating 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
currencyin a floating exchange rate.
In times of high
inflation, appreciation will be common to all balance sheetassets. Generally, the term is reserved for propertyor, 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 scarcityof usable land forces its pricein 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.
* 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
Wikimedia Foundation. 2010.
Look at other dictionaries:
appréciation — [ apresjasjɔ̃ ] n. f. • 1389; bas lat. appretiatio → apprécier 1 ♦ Action d apprécier, de déterminer le prix, la valeur de qqch. ⇒ estimation, évaluation. L appréciation du tableau par l expert. Par ext. Une fausse appréciation de la distance. 2… … Encyclopédie Universelle
appreciation — I (increased value) noun accrual, accruement, accumulation, added monetary worth, addition, advance in worth, gain, gain in worth, growth, growth in value, increase, increased price, increment, realization, rise, rise in value II (perception)… … Law dictionary
Appreciation — Ap*pre ci*a tion, n. [Cf. F. appr[ e]ciation.] 1. A just valuation or estimate of merit, worth, weight, etc.; recognition of excellence. [1913 Webster] 2. Accurate perception; true estimation; as, an appreciation of the difficulties before us; an … The Collaborative International Dictionary of English
appréciation — APPRÉCIATION. s. f. Estimation de la valeur d une chose. Appréciation juste, raisonnable. C est un tel qui en a fait l appréciation … Dictionnaire de l'Académie Française 1798
appreciation — [n1] thankfulness acknowledgment, gratefulness, gratitude, indebtedness, obligation, recognition, testimonial, thanks, tribute; concepts 12,32 Ant. criticism, disparagement, disregard, neglect appreciation [n2] increase in worth enhancement, gain … New thesaurus
appreciation — Appreciation. s. f. Estimation de la valeur d une chose. Appreciation juste, raisonnable. c est un tel qui en a fait l appreciation … Dictionnaire de l'Académie française
appreciation — (n.) c.1600 (with an isolated use from c.1400), from Anglo Fr. appreciation, noun of action from O.Fr. apprécier (14c.), from L.L. appretiare estimate the quality of (see APPRECIATE (Cf. appreciate)). Generally with a sense of high estimation… … Etymology dictionary
appreciation — ► NOUN 1) recognition of the value or significance of something. 2) gratitude. 3) a favourable written assessment of a person or their work. 4) increase in monetary value … English terms dictionary
appreciation — [ə prē΄shē ā′shən] n. 1. the act or fact of appreciating; specif., a) proper estimation or enjoyment b) grateful recognition, as of a favor c) sensitive awareness or enjoyment, as of art 2. a judgment or evaluation ☆ 3. a rise in value or price:… … English World dictionary
appreciation — noun 1 understanding and enjoyment of sth ADJECTIVE ▪ deep, great, real ▪ aesthetic ▪ art, music ▪ new … Collocations dictionary