Replacement Value
The
cost of replacing an
asset in the case that it is damaged or destroyed. That is, the replacement value changes according to the
market value of the asset. An individual or company may
buy a
replacement cost insurance policy to cover the replacement value. It is also called the replacement cost.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
replacement cost
The current cost of replacing an asset with an equivalent asset.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
replacement cost
the cost of replacing a FIXED ASSET (such as an item of machinery) or STOCK. Unlike HISTORIC COST – the original cost of acquiring an asset – replacement cost makes due allowance for the effects of INFLATION in increasing asset prices over time. Prudence requires that stocks are valued in a company's accounts at historic or replacement cost, whichever is the lower. See also REVALUATION PROVISION, INFLATION ACCOUNTING, APPRECIATION, definition 1.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
replacement cost
the cost of replacing an ASSET (such as an item of machinery). Unlike HISTORIC COST - the original cost of acquiring an asset - replacement cost makes due allowance for the effects of INFLATION in increasing asset prices over time. See also INFLATION ACCOUNTING, APPRECIATION 2.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
replacement cost
(1) In appraisal,the cost to erect a new building substantially similar to the current one. (2) In insurance,the cost to purchase a new item substantially similar to the one damaged, destroyed,or stolen. Contrast with fair market value.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.