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What is the Appraisal Method Of Depreciation?

The appraisal method of depreciation is a method of asset depreciation whereby one assesses and reports the difference in the value of the asset at the beginning and at the end of the accounting period. The difference is value is the depreciation recorded.

If the appraised value does not decrease during the time, then no depreciation is added to the expense in the appraisal method of depreciation.

Note: Under the generally accepted accounting principles, this approach is not considered acceptable.