Аннотация:The findings from this chapter are applicable to such Real Property accounting situations in which the value of land is assumed to be known, but the value of building erected on it (and, by implication, the value of overall property) needs be determined on the basis of known income arising from the overall property. As is well known, across most accounting regimes globally building is usually a depreciable element in the cost-based accounting model, while a fee-simple land element in the property is deemed perpetual and not subject to depreciation—necessitating a separate accounting treatment for both elements in the overall property. Given this context, this chapter provides analytical framework and guidance to help accountants to do the following: 1) To determine the value of the building element for the initial recognition in the accounts of entities, without recourse to a meticulous buttom-up cost analysis (or unit costs) of substitution. 2) To justify the economically rational residual service life of the building element. 3) To establish the economically rational depreciation pattern for the building element. To achieve these objectives, this chapter uses a mathematical model formulated in continuous time and based on the well-known DCF analysis discounting principles, however, because the model is framed in continuous time its advantage is in that it allows for less burdensome forecast inputs (i.e. prospective financial information) than the conventional DCF format in discrete time. It uses the explicit assumptions for the rates of change as inputs, instead.