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Author
Źróbek Ryszard
Title
Remarks about Methods of Recognizing Types of Depreciation and Obsolescence
Source
Studia i Materiały Towarzystwa Naukowego Nieruchomości. Selected Aspects of the Cost Approach in Property Valuation, 2011, s. 65-72, rys., tab.
Journal of the Polish Real Estate Scientific Society
Keyword
Amortyzacja, Wartość nieruchomości
Amortization, Real estate's value
Abstract
There are some methods for recognizing and quantiying varius types of depreciation and obsolescence. Depreciation can be defined as a loss in utility and hence value from any cause (BARBER 1991). There are a number of approaches by which depreciation either for accounting or valuation purposes can be estimated. Baum (1991) defines depreciation as a loss in the existing value of property and attributes the causes to:
  • physical detoriation,
  • functional obsolescence, and
  • aesthetic obsolescence.
In the context of property, depreciation refers to the loss of investment value. This loss is a function of two distinct negative processes (MANSFELD 2000):
  1. physical deterioration, and
  2. obsolescence. (fragment of text)
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Bibliography
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ISSN
1733-2478
Language
eng
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