Appraised value pertains to the amounts contained in an appraisal report for specific property. The appraisal report is generally prepared by a professional appraiser who looks at the property's features including size, type of construction, location, condition, and recent sales of comparable property in the vicinity. The appraised value is an attempt to determine the property's market value. The appraisal report for real estate is likely to report the appraised value of the land separate from the appraised value of the buildings. Hence, accountants might use the relationship of these values in order to allocate the cost of real estate into the cost of the land and the cost of the buildings.
Appraised values have relevance because a company's balance sheet will report land and buildings at the cost when they were acquired. (The balance sheet will also report the accumulated depreciation of the buildings.)
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