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
However, such an approach, including over-depreciation
, would be unhelpful to China's long-term economic prospects.
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.