Accrued depreciation represents any loss of value from the replacement/reproduction costs on account of all reasons, excepting depletion, based on the appraisal date.
To make it slightly simpler, accrued or accumulated depreciation is any asset’s cumulative depreciation value until any particular time or point. This is worked out under the generally accepted principles of accounting or GAAP, indicating that matching of expenditure must be done with the same period of accounting where the generation of the associated revenue has taken place. With depreciation, the business will be expensing the part of the value of any capital asset over a period of time, and generating revenues simultaneously. The cost linked to the usage will be documented in this case.
This is the total depreciation that has been claimed on any property till date. It gives a bird’s eye view of the property, while ascertaining the valuation as well. This is the usage of the term in the real estate industry.
