ABSTRACT
A property item may receive an increase in value because of physical additions or because of an advance in the level of prices. Appreciation is the term applied to the second type of value increase; whenever the value of an asset increases, without the addition of new units, it is said to have appreciated. The value changes which affect property items of a permanent character, such as buildings, machinery, etc., are usually decreases. Any possible appreciation in such cases is normally more than offset by depreciation. An important exception is land. In general all land properties increase in value with the growth of the community. As far as it can be definitely ascertained this appreciation should appear in the accounts.
