What is accrued depreciation?
In the cost approach, the loss in value of existing improvements: physical deterioration, functional obsolescence, and external obsolescence. Distinct from tax depreciation, which is a cost-recovery concept.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.