# Depreciable Assets / Appreciable Assets



## RhoKappa

These are terms of personal finance.  A depreciable asset is something that loses value over time.  An example will be a car.  You can buy a new lexus for $60,000, but after four years the car will be worth under $30,000.  Conversely, an appreciable asset is something that gains value over time.  For example, Google stock first sold for about $100 per share ten years ago, and today is worth $800 per share.

Есть ли русское выражение?


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## Vadim K

_Depreciable assets - Амортизи́руемые активы._
"_Depreciation_" and "_Amortization_" both in Russian are translated as "_Амортиза́ция_".
In the finance accounting and reporting "_depreciation_" is usually related to tangible assets and "_amortization_" is related to intangible ones.

As for "_appreciable assets_", I would say that there is no such a term in Russian. I would offer something like "_Активы, увеличивающие стоимость со временем_".


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## smmichael

What concerns *appreciable assets*, I would say it could be translated as *неамортизируемые активы *which I think is the only definition used in russian accounting and includes both *appreciable assets *and *non-depreciable assets*.


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## Vadim K

smmichael said:


> What concerns *appreciable assets*, I would say it could be translated as *неамортизируемые активы *which I think is the only definition used in russian accounting and includes both *appreciable assets *and *non-depreciable assets*.



No, it is not true. "_Appreciable assets"_ and "_неамортизируемые активы_" are two different terms which do not have much in common. "_Appreciable assets_" are the assets which gain value over time. And "_неамортизируемые активы_" are just the assets which are not required to depreciate their value over time. There is no a special term in russian accounting for such items. Moreover, the term "_aprreciable assets_" is not used either in the global finance reproting standards, for example IFRS or US GAAP. This term can be used only for management accounting purposes or for investment advertising but not for the finance accounting purposes.


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## smmichael

Vadim K said:


> "_Appreciable assets"_ and "_неамортизируемые активы_" are two different terms which do not have much in common. "_Appreciable assets_" are the assets which gain value over time. And "_неамортизируемые активы_" are just the assets which are not required to depreciate their value over time.



That is almost exactly what I said expressing it in a shorter way.


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## Vovan

*Vadim* and *Michael*, RhoKappa was asking about the terms as applied to _personal_ finance. Do you think that using "амортизация" in Russian equivalents is a good idea? Don't ordinary people call their assets that gain/lose value (such as shares or luxury goods) in a simpler way?


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## smmichael

Vovan, probably you are right, but then I have no idea how to interpret these terms in a different way. Anyway isn't the situation in English the same where depreciable/appreciable assets are used in both corporate and personal finance?


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## Vadim K

Vovan said:


> *Vadim* and *Michael*, RhoKappa was asking about the terms as applied to _personal_ finance. Do you think that using "амортизация" in Russian equivalents is a good idea? Don't ordinary people call their assets that gain/lose value (such as shares or luxury goods) in a simpler way?



I would say that ordinary people in Russia do not use the term "_asset/актив_" at all. And I think that may be there is some misunderstood here because "_personal finance_" process in USA includes the same steps as corporate finance does but in a little more simplified way. And the people who would like to plan their personal finance should study this area of the financial management (personal finance) where are used the same terms as for the financial accounting.

In other words, ordinary people in Russia are not used these terms because most people in Russia just don't do any assesments, budget creation, monitoring of their personal financial position and so on. And the people who do make their personal financial plans in Russia should use the terms of financial accounting, including the term "_амортизируемые активы_".


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## Vovan

*Vadim*, you're exaggerating! People in Russia _have_ assets. They buy and sell things, mortgage their real estate, monitor market prices, assess their assets, etc. Appreciation and depreciation here relate not to financial managers' choices or some state regulations, but to market prices.


> _Amortization_ is the process of reducing, or accounting for, an amount (usually a financial debt) over a period according to a plan.
> <...>
> Amortization is also applied to capital expenditures of certain assets under accounting rules, particularly intangible assets, in a manner analogous to depreciation.
> 
> Wikipedia


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## Rosett

In personal finances, this could be "обесцениваемые вещи" vs "необесцениваемые".
вы не боитесь брать ипотеку? - Форумы Ykt.Ru
6 февр. 2013 г. - Необходимо сразу приобретать недвижку, золото и т.п. не _*обесцениваемые вещи*_.


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## Vadim K

Vovan said:


> *Vadim*, you're exaggerating! People in Russia _have_ assets. They buy and sell things, mortgage their real estate, monitor market prices, assess their assets, etc. Appreciation and depreciation here relate not to financial managers' choices or some state regulations, but to market prices.



Sure they have. But the term "_personal finance_" does not relate to the activity of buying and selling things or monitor market prices. "_Personal finance_" is the area of financial management which teach any person how they can plan their personal financial position in the future, how they should monitor and correct their financial plans and how they should calculate their personal financial position at any time.

Buying and selling things or changes in market prices just change the personal financial position of people. But in order to plan, monitor and calculate this financial position they need to use the finance terms which are applicable in _corporate finance/finance accounting/finance reporting_. And the term "_depreciable assets/амортизируемые активы_" is just one the terms used in that area.


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## Vadim K

Rosett said:


> In personal finances, this could be "обесцениваемые вещи" vs "необесцениваемые".
> вы не боитесь брать ипотеку? - Форумы Ykt.Ru
> 6 февр. 2013 г. - Необходимо сразу приобретать недвижку, золото и т.п. не _*обесцениваемые вещи*_.



Недвижка - необесцениваемая вещь?


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## Q-cumber

Vadim K said:


> Недвижка - необесцениваемая вещь?





I'd simply say "выгодные / невыгодные вложения".


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## Vovan

Vadim K said:


> "_Personal finance_" is the area of financial management...


"Personal Finance" (PF) is a school subject, which is gradually becoming part of schools' curricula in Russia.
I've seen a couple of American textbooks on PF.


> They need to use the finance terms which are applicable in _corporate finance/finance accounting/finance reporting_.
> And the term "_depreciable assets/амортизируемые активы_" is just one the terms used in that area.


Please shed some light on _how exactly_ someone's assets are depreciated/appreciated. And how different this is from what happens in businesses. Are you being serious?..

Ordinary people don't usually submit financial reports on their personal belongings to anyone. These things do happen, but not with each and every object in their possession. Therefore, there is no process of asset valuation _per se _on a regular basis_. _Nor is there a process of asset re-valuation, which includes appreciation/depreciation. And at the same time, people's assets are appreciated/depreciated... How's that, I wonder?


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## Vadim K

Vovan said:


> Please shed some light on _how exactly_ someone's assets are depreciated/appreciated. And how different this is from what happens in businesses. Are you being serious?..
> 
> Ordinary people don't usually submit financial reports on their personal belongings to anyone. These things do happen, but not with each and every object in their possession. Therefore, there is no process of asset valuation _per se _on a regular basis_. _Nor is there a process of asset re-valuation, which includes appreciation/depreciation. And at the same time, people's assets are appreciated/depreciated... How's that, I wonder?



I am sorry but I can not shed _some _light on this question. I have spent 25 years of my life studying finance at the Universtity and working as a finance controller and I can say that it is not possible to explain this matter in one thread. And I am sorry to say that but I can also see that the more we discuss about this matter the less I understand what you would like to say. Because in my opinion you start mixing up the terms and the processes which probably you do not have quite clear idea what they are in reality. Please don't be offended at me for such kind of suggestion, ok?

So if you don't mind I would suggest finishing our discussion. And I would just like to repeat what I said at the beginning of the thread. There is a Russian common phrase of the term "_Depreciable assets_", which is "_Амортизи́руемые активы_". And there is no a Russian common phrase of the term "_Appreciable assets_". That's all.


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## Rosett

Vadim K said:


> Недвижка - необесцениваемая вещь?


Мы слово ищем под термин appreciable assets на английском. На английском "недвижка" - это real estate; real estate тоже может так же обесцениться.


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## Q-cumber

I think the question was about the terms that we use in everyday life. (It's a pity that RhoKappa seems to never follow the topics he once started).


> A depreciable asset is something that loses value over time. An example will be a car. You can buy a new lexus for $60,000, but after four years the car will be worth under $30,000...


So we say: В машину вкладывать деньги (вкладываться) невыгодно. Машина - это *невыгодное вложение. *And vice versa.


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## Rosett

Q-cumber said:


> I think the question was about the terms that we use in everyday life. (It's a pity that RhoKappa seems to never follow the topics he once started).
> 
> So we say: В машину вкладывать деньги (вкладываться) невыгодно. Машина - это *невыгодное вложение. *And vice versa.


Интересно, что "вложение" по-английски будет "investment," а не "asset."


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## Q-cumber

Rosett said:


> Интересно, что "вложение" по-английски будет "investment," а не "asset."


Не суть. В разговорной речи мы "активы" практически не используем.


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## Rosett

Q-cumber said:


> Не суть. В разговорной речи мы "активы" практически не используем.


А "выгодные активы" - и подавно.


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## Vovan

For the time being, I can only provide descriptive Russian equivalents.

Активы с повышающейся рыночной стоимостью. _(appreciable assets)_

Активы с понижающейся рыночной стоимостью. _(depreciable assets)_
Again, I maintain that the terms as they are applied in personal finance_ do not have_ to relate to "amortization/depreciation" as it is understood in a corporate environment.

I have tried to eliminate the necessity of using "amortization/depreciation" by including "market value" in the descriptive definitions.
My reasons to give the market the final say can be understood from these two extracts:


> Depreciable assets: Assets that decline in value or usefulness over a period of time through use or obsolescence.
> 
> (Black's law dictionary, 1990.)





> Obsolescence is the state of being which occurs when an object, service, or practice is no longer wanted even though it may still be in good working order.
> 
> Obsolescence - Wikipedia



Also, I think it's useful to note that both terms are used in two contexts:

as relating to someone's particular asset(s), and
like this: _"Properly maintained rental real estate is correctly considered an appreciable asset by investors. Historically, real estate values have tended to be a hedge against future price inflation, a trend that continues to the constantly improving demographics for California property. In contrast, personal property is often referred to by investors as a depreciable or wasting asset." _(Fred Crane. Tax Advantages of Owing Real Estate.)


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## igusarov

I'd like to note that the concept of "амортизация" in Russian doesn't exactly match "depreciable".

"Амортизация" in accounting is not the loss of value itself, but rather a counter-measure intended to _mitigate_ the loss of value. Typically it refers to the means of _restoring_ original value of an asset, for example by accumulating enough money to replace or repair the worn-out asset. Naturally, the amount of "амортизационные отчисления" should reflect the loss of value of an asset, so the numeric value of "амортизация" is the same as the estimated loss of value. But conceptually it's a _reaction_ to the process in question.

Having said that, I can hardly imagine an average person thinking about his private belongings in terms of "амортизация"... It's way too complicated.
"Обесцениваться" and "не обесцениваться" seem like common and easy words. They are verbs, though.


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## Rosett

igusarov said:


> I'd like to note that the concept of "амортизация" in Russian doesn't exactly match "depreciable".
> 
> "Амортизация" in accounting is not the loss of value itself, but rather a counter-measure intended to _mitigate_ the loss of value. Typically it refers to the means of _restoring_ original value of an asset, for example by accumulating enough money to replace or repair the worn-out asset. Naturally, the amount of "амортизационные отчисления" should reflect the loss of value of an asset, so the numeric value of "амортизация" is the same as the estimated loss of value. But conceptually it's a _reaction_ to the process in question.
> 
> Having said that, I can hardly imagine an average person thinking about his private belongings in terms of "амортизация"... It's way too complicated.
> "Обесцениваться" and "не обесцениваться" seem like common and easy words. They are verbs, though.


Амортизация есть "depreciation" в финансовом смысле (не связанном, пропорционально или как-то иначе, с материальным износом), но не "depreciable", означающее "подверженный потере стоимости/уценке".


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