Appraisal Date

Posted in Finance, Accounting and Economics Terms, Total Reads: 2291

Definition: Appraisal Date

Appraisal date refers to the date on which the value of an asset is determined. It is also known as valuation date. The valuation of the asset could be done for many reasons including:

  1. Determination of the value for reporting purposes. In this case the appraisal date could be at the end of every reporting period (monthly, quarterly, annually etc.)
  2. Determination of the valuation of the asset which has to be distributed after the occurrence of a certain event. For e.g. one of the debt covenants could be the trigger of a board meeting when the valuation of company’s assets falls below a threshold value.
  3. In the matter of divorce of companies, individuals, business partners etc, the court needs to decide the valuation of different assets that are to distributed are to be considered as of what date and that date becomes the appraisal date. The date to be considered in such cases varies largely with the discretionary powers of the court.

Hence, this concludes the definition of Appraisal Date along with its overview.

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