With regard to economic terms, the word appreciation is widely used not only in the field of administration but is also frequently used in contexts such as: business management, business and finance.
The term refers mainly to the increase in the value of an object or a specific company. The increase in value will depend on each market or even each country. The appreciation of an asset is generally determined by several external factors. It is worth mentioning that these factors not only affect the increase (appreciation) of the value of a good but also have an impact on the opposite effect, which is called depreciación.
Technically, the appreciation is the price that a good of a company has. However, from an accounting point of view, the appreciation may include the meaning of "higher value of an asset than for economic and political reasons."
Appreciation is the temporary or permanent increase in the value of an asset. Mainly, this increase takes place when there are adverse situations in the markets or motivated by the price regulating mechanisms themselves: supply and demand.
Let's see an example: the increase in the price of a work of art.
In this case, if the good is in high demand because discoveries have been made about the artist, it is likely that a boom will originate and the same fashion will increase the value of the work of art; this is appreciation.
From a monetary point of view, appreciation can also be the increase in value of one currency as a result of comparison with another. It is applied in cases where the floating currency conversion regime is not well regulated and because the formal revaluation system does not apply.