Replacement costs of a property represent the initial costs of the same or at least comparable economic goods in the future. They lead to a better preservation of real assets than current values, are against it in addition, heavy and more inaccurately to be determined. Replacement costs apply particularly during the writing-off within the costing and performance calculation. In addition a household insurance usually replaces the replacement value, which makes it more attractive in the case of loss than for example a possibly likewise occurring liability insurance (current value).

One differentiates

• Replacement original value

The replacement original value represents the size, which would be to be applied, in order to buy the article again at present. In order to make this value comparable with that of an article already used, it must be continued. If the used article was already copied to the half, then one copies the replacement original value likewise to the half and compares now the two values.

• Replacement time value

The replacement time value is a value of a as well as possible comparable article, which is used sold/became. It is directly comparable with the estimated value of the used article.

In the economical Gesamtrechnung the Federal Statistical Office proves the fixed assets both to historical initial costs and to replacement costs.

Articles in category "Replacement costs"

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