Jääkväärtus

Jääkväärtus, a Finnish term, translates to "residual value" in English and refers to the estimated worth of an asset at the end of its useful life or lease term. This concept is particularly relevant in financial contexts, such as accounting, leasing, and depreciation. When an asset is acquired, its initial cost is often depreciated over its expected lifespan. The jääkväärtus represents the portion of the original cost that is not depreciated and is expected to be recovered at the end of the asset's service.

In leasing agreements, the jääkväärtus is a crucial factor in determining monthly payments. The lessee effectively pays for the difference between the asset's initial value and its projected residual value over the lease period. A higher estimated jääkväärtus generally results in lower lease payments, while a lower residual value leads to higher payments.

Similarly, in accounting, the jääkväärtus is used to calculate depreciation expenses. The depreciable amount of an asset is its cost minus its residual value. This ensures that the asset is not fully expensed until its estimated end-of-life value is considered. The accuracy of the jääkväärtus estimation significantly impacts the financial reporting of an entity. Factors influencing residual value include the asset's expected durability, market demand for used assets of that type, technological obsolescence, and maintenance history.