8.8 Intangible assets - Viewpoint

Useful Life Definition and Use in Depreciation of Assets - Investopedia

Useful Life: The useful life of an asset is an estimate of the number of years an asset is likely to remain in service for the purpose of cost-effective revenue generation. The Internal Revenue ...

How To Determine the Useful Life of an Asset for Tax & GAAP

Expected Use of the Asset. There are two applications for determining the expected use of an asset as a basis for useful lives. 1. Asset's expected use by its expected output: If an asset is expected to produce a certain number of units, its expected use is for the production of those units. Hence, its useful life will depend on how many ...

Useful Life | Formula + Calculator - Wall Street Prep

2. Useful Life Calculation Example. Under the straight-line method, the annual depreciation expense is $5 million, so we can divide our depreciable cost by the depreciation expense to determine the implied useful life assumption by management. Useful Life = $125 million ÷ $5 million = 25 Years. In closing, the implied useful life assumption of ...

4.2 Determining the useful life and salvage value of an asset - Viewpoint

Although not defined, we believe the use of the term "useful economic life" in ASC 360-10-35-4 is intended to have the same meaning as "useful life," as defined in the ASC Master Glossary. The useful life assessment of a long-lived asset is based on entity-specific assumptions about how the entity intends to use the asset, which may be different from market-participant assumptions.

Useful life definition — AccountingTools

Useful life is the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations. This is an important concept in accounting, since a fixed asset is depreciated over its useful life. Thus, altering the useful life has a direct impact on the amount of depreciation expense recognized by a ...

Usefulness of 'useful life'

The useful life is not deemed to be an accounting policy of an entity, but rather an estimate, looking at the expected usage of the asset. If it was deemed to be an accounting policy, in accordance with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, the previous year's financial statements would need to be restated as if the policy had always been in place.

Estimated Useful Life of an Asset - Accounting Capital

Example 1 - Estimated useful life of a tangible asset. Car: Imagine you buy a brand-new car for your taxi business. You estimate that this car will be able to run smoothly and efficiently for about 10 years before it starts experiencing significant breakdowns or becomes outdated. The scrap value is estimated to be nil.

PDF HKAS 16 Property, Plant and Equipment - Hong Kong Institute of ...

Useful life is: (a) the period over which an asset is expected to be available for use by an entity; or (b) the number of production or similar units expected to be obtained from the asset by an entity. Recognition 7 The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if: ...

Useful Life - Due

Definition. Useful life refers to the estimated period of time during which an asset, such as machinery or equipment, is expected to be functional and productive for its intended purpose. This period does not include the asset's salvage period. It is a key concept for businesses in calculating depreciation for accounting and tax purposes.

PDF Intangible Assets - Hong Kong Institute of Certified Public Accountants

useful life assessment for that asset. If they do not, the change in the useful life assessment from indefinite to finite should be accounted for as a change in an accounting estimate. Impairment testing intangible assets with finite useful lives IN12 SSAP 29 required the recoverable amount of an intangible asset that was amortised

Residual Value Explained, With Calculation and Examples - Investopedia

Residual Value: The residual value of a fixed asset is an estimate of how much it will be worth at the end of its lease, or at the end of its useful life. The lessor uses residual value as one of ...