Over-depreciation financial definition of Over-depreciation
overdepreciation (redirected from Over-depreciation)
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
An accounting-method change from an improper method of depreciation that resulted in under- or over-depreciation
of an asset can be made under the automatic-consent provisions of Rev.
We are not arguing that two mistakes equal the right answer, but the solution for over-depreciation
of machinery and equipment doesn't require going to fair value accounting.