Residual value
Residual value (hereinafter, the Value) is estimated value of an asset after all the allowable depreciation has been taken. Rarely, the Value can also refer to salvage value.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Residual value. Estimated value of an asset after all the allowable depreciation has been taken.
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Residual value. The market value of the leased property at the expiration of the lease. The estimate of the residual value is one of the key elements in lease analysis.
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
