Appreciation

  1. An increase in the value of an asset, usually as a result of inflation. This usually occurs with land and buildings; the directors of a company have an obligation to adjust the nominal value of land and buildings and other assets in balance sheets to take account of appreciation. See ASSET STRIPPING.
  2. An increase in the value of a currency with a *floating exchange rate relative to another currency. Compare DEPRECIAT!ON; DEVALUATION.