Useful economic life
From ACT Wiki
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 economic life, to their residual value.
See also
- Amortisation
- Depreciation
- Financial reporting
- Fixed assets
- IAS 16 (Tangible assets - Property, plant and equipment)
- IAS 38 (Intangible assets)
- Impairment
- Intangible assets
- International Financial Reporting Standards (IFRS)
- Life
- Net book value
- Reducing balance
- Residual value
- Straight line
- Useful life
- Write down
