Residual values of assets

Residual values of assets and how to calculate them is always a difficult topic. Let’s recap.

The residual value of an asset is the estimated amount that an entity would currently obtain from   disposal of the asset, after deducting the estimated costs of disposal, if the asset was already of the age and in the condition expected at the end of its useful life. See the following Frequently Asked Questions on the Standards of GRAP for common queries on residuals values of assets

3.1 – Must an asset always have a residual value?

3.2 – What is the treatment of fully depreciated assets still in use (other than on the initial adoption of the Standards of GRAP)?

3.8 – Are changes to useful lives, residual values and depreciation methods changes in an accounting policy or a change in accounting estimate?

Access the FAQs here.