A method of
estimating accrued depreciation that
separately considers and estimates the
deductions for physical deterioration,
functional obsolescence and economic
obsolescence. These estimates are then added
up to provide a lump some deduction from
reproduction cost new.
Accrued
depreciation is broken down and measured
under the following classifications;
Physical
deterioration - curable
Physical
deterioration - short lived and long
lived - incurable
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