Regulations on Real Estate Appraisal Article 68

The calculation of accrued depreciation for a building shall take account of features of the building and market conditions, so as to determine the appropriate method of depreciation among the straight-line depreciation, convex-type depreciation or concave-type depreciation.As for estimation of accrued property depreciation amount, in addition to consideration of physical and functional factors, component parts of individual buildings and their uses shall be considered from the economic perspective, and the maintenance and renovation of buildings be observed, to estimate the remaining economic life of the building. The above remaining economic life is then added to the passed years to arrive at the economic life of the building, and the calculation should be detailed in theappraisal report.