external obsolescence

external obsolescence

Same as economic obsolescence.
References in periodicals archive ?
Other forms of depreciation include functional obsolescence and external obsolescence.
Appraisers refer to this as external obsolescence, which is depreciation caused by external factors not on the property.
They're not finding the cost approach any easier, either, because there are fewer properties to support an estimate of external obsolescence.
External obsolescence adjustments of 25-35 percent applied to the manufacturing equipment and CWIP.
The cost approach is useful in determining depreciation values for physical deterioration, or functional or external obsolescence, as applied to the market approach.
Economic obsolescence, also called external obsolescence, is defined as "a loss in value caused by factors outside a property.
On the positive side, many businesses--and not only manufacturers--can take advantage of external obsolescence caused by the economic crunch to reduce the assessed value of their property and, in turn, their property taxes.
Entrepreneurial profit, entrepreneurial incentive, and external obsolescence are contentious issues.
While these properties many times involve built-to-suit and sale-leaseback situations, these are not indications, by themselves, that massive amounts of functional or external obsolescence exist in the marketplace.
Also, the subject property is no longer required to suffer from functional or external obsolescence.
The key to the cost approach is the accurate measurement of functional and external obsolescence elements of depreciation.
cured] in this case comprises the reproduction cost of a new substitute item plus the depreciated reproduction cost of the remainder of the property minus external obsolescence, this relationship can be expressed as:

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