Replacement cost accounting

Definition:

An accounting method that includes as part of depreciation the difference between the original purchase price of an asset and the current replacement cost.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Revaluation

An increase in the foreign exchange value of a currency that is pegged to other currencies or gold.

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