Useful economic life

Accounting.

The period over which the present owner of an asset will derive economic benefits from its use.

Using depreciation or amortisation, the book values of fixed assets are generally written down over their remaining useful economical life, to their residual value.

See also

• Amortisation
• Depreciation
• Fixed assets
• Life
• Net book value
• Reducing balance
• Residual value
• Straight line
• Write down