overdepreciation(redirected from Over-depreciates)
1. Depreciation that is more than sufficient to allow for the eventual replacement of the asset being depreciated. Compare underdepreciation.
2. 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.