For example, a machine may be profitably employed in a business but no more than scrap value could be obtained from its sale (net selling price).
The origin of deprival value is frequently ascribed to JC Bonbright's 1937 work The Valuation of Property.
[1] Edwards and Bell's The Theory and Measurement of Business Income (1961) [2] was hugely influential in emphasising the difference between entry and exit values and making the case for replacement cost.
[5] During the 1970s deprival value played a major role in the development of accounting in times of inflation, being endorsed by official reports in the UK,[6] Australia,[7] New Zealand [8] and Canada[9] Deprival value also formed the basis of the disclosures required in the United States by SFAS 33.
[13] Most recently, the International Public Sector Accounting Standards Board has discussed deprival value (and its application to liabilities under the 'relief value' model) in a Consultation Paper issued as part of its project to develop a Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities.