Salvage value
In accounting, salvage value means the amount expected from disposing of an asset at the end of its useful life, net of disposal costs — the floor depreciation stops at.
- Layer
- Lexicon
- Defined in
- Lexicon
- Nearby
- 4
Authority
This definition follows ASC 360-10-35-4.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
The lesson that teaches this
Accounting, 0 to 1 — a free course taught end to end on one month of one company, with the spreadsheet exercises to work it yourself.
Salvage value, in use
Quoted from the document that use the word — what it does to an interface, in the spec's own sentence.
Equipment costing $48,000 with a $3,000 salvage value and a 60-month life depreciates (48,000 − 3,000) ÷ 60 = 750 a month.
Schedules, accruals & roll-forwards — 5. Fixed assets & depreciation
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- scrap alone
- fair value
Nearby in the catalog
No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.
6Statements
Family specTerms this one depends on
- DepreciationSpreading the cost of a fixed asset over the periods it serves
- Useful lifeThe period over which an asset is expected to contribute to cash flows, which sets the depreciation period — an estimate, revised prospectively
- AssetA present right of the entity to an economic benefit (FASB CON 8 ¶E16)
Also in Fixed assets & leases
Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.