Lepoarvoa

Lepoarvoa is a Finnish term used in accounting and finance to describe the value associated with an asset when it is no longer in active use, effectively its residual or salvage value. The concept is similar in purpose to other terms such as jäännösarvo, but the exact terminology and measurement practices can vary by country and accounting framework.

In practice, lepöarvoa refers to the amount that could be recovered from an asset at the end of its useful life or during disposal. Estimating this value involves forecasting potential sale proceeds, scrap value, or alternative reuse possibilities, and then deducting disposal costs, transaction costs, and any expected declines in market value. Because it focuses on recoverable value rather than current market price, lepöarvoa can differ from an asset’s fair value or its book value on the balance sheet.

Applications of the concept include tangible assets such as machinery, equipment, vehicles, and buildings, as well as certain underutilized resources where a disposal or repurposing decision is considered. For instance, a machine nearing retirement might be assigned a lepöarvoa based on expected resale of its functional components or its value as a used unit.

See also: jäännösarvo, poisto, käyttöikä. Note that usage and calculation methods for lepöarvoa vary by jurisdiction and accounting standards, and some organizations may prefer the term jäännösarvo for similar concepts.