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 economic life, to their residual value.

See also

• Amortisation
• Depreciation
• Fixed assets
• IAS 16 (tangible assets)
• IAS 38 (intangible assets)
• Life
• Net book value
• Reducing balance
• Residual value
• Straight line
• Useful life
• Write down