👉 Derating is a concept in accounting and finance that refers to the process of assigning a value to an asset based on its performance over time. It involves determining the fair market value, or "fair price," of an asset when it has been held for a certain period of time and considering various factors such as the asset's age, condition, and whether it is currently being used. The term derives from the German word "der", which means "to measure" or "to determine". In accounting
