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we calculate appreciation for asset what is it?
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Answer / h.r. sreepada bhagi
A Company can have an asset revaluation policy & can value
its long term assets periodically. Revaluation can result in
either increase or decrease in the value of the asset.
Increase in value is 'Appreciation' & decrease in value is
'Depreciation'. However the difference in the present book
value of assets & the value arrived at on revaluation will
be transferred to Revaluation Reserve A/c. One example of
appreciation in value is that of Land.
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Answer / s.usmani
Appreciation
An increase in the value of an asset over a period of time. The increase can occur for a number of reasons including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease over a period of time.
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