Overdepreciation financial definition of overdepreciation
Depreciation that is more than sufficient to allow for the eventual replacement of the asset being depreciated. Compare underdepreciation
Depreciation that causes an asset to be carried on a firm's books at a lesser value than it would be worth if it were sold. Overdepreciation produces understated earnings and assets on financial statements. Compare underdepreciation
References in periodicals archive
It is important to note that this ruling does not cover the prior year's overdepreciation
would be needed to reduce the stock of debt to the original level, resulting in the 'hysteresis loop' shown.
In recent years, the former has been larger than the latter, and the CCAdj, therefore, has been an estimate of the overdepreciation