Which of the following is NOT a method of depreciation?

The increased valuation method is not recognized as a standard method of depreciation in accounting practices. The established methods for allocating the cost of tangible assets over their useful lives include double-declining balance, straight-line, and units of production.

Double-declining balance is an accelerated depreciation method that depreciates an asset more in the earlier years of its life compared to later years. This is useful for assets that lose value quickly when first used.

Straight-line depreciation is the simplest and most commonly used method. It allocates an equal expense amount over the asset's useful life, making it easy to understand and apply.

Units of production bases depreciation on the actual usage of the asset, making it suitable for assets whose wear and tear correlates with the output they provide. This method is particularly relevant for manufacturing equipment that operates at varying levels.

In contrast, the increased valuation method lacks the foundational recognition in accounting frameworks and standards, including the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), as a legitimate method for calculating depreciation.