What is Undepreciatory?

Undepreciatory refers to something that has not been depreciated or reduced in value over time. In accounting, depreciation is the process of allocating the cost of a tangible asset over its useful life, which means that the asset's value decreases over time as it is used or becomes less valuable.

If an asset has not been depreciated, then its value on the balance sheet will be the same as its original cost, and it will be considered undepreciatory. This can happen if the asset is new and has not been in use for a long time, or if the company has not been using the straight-line method of depreciation, which assumes that the asset's value decreases evenly over its useful life.

For example, let's say a company purchases a piece of equipment for $10,000 and it is expected to last for 5 years. If the company does not depreciate the equipment over those 5 years, then the equipment will still be valued at $10,000 on the balance sheet after 5 years, even though its actual value may have decreased due to wear and tear or obsolescence. In this case, the equipment would be considered undepreciatory.