Restvärde

Restvärde, often translated as salvage value or residual value, is the estimated net amount that an asset is expected to be worth at the end of its useful life after deducting disposal costs. In accounting for fixed assets, restvärde is used to determine the depreciable amount—the portion of the asset’s cost that will be allocated to expense over its useful life.

In typical straight-line depreciation, the annual depreciation is calculated as (cost minus restvärde) divided by the asset’s useful life. Other depreciation methods may also use restvärde, but the common principle remains: the asset’s book value is reduced toward the estimated remainder that will be recovered at disposal. Restvärde is an estimate and can be revised if circumstances change, such as new information about disposal costs or market conditions. Any revision is generally applied prospectively, affecting future depreciation charges.

Estimating restvärde involves considering factors such as expected condition at end of life, technological obsolescence, and market demand for the asset’s residual value. Inaccurate estimates can affect reported profit, asset values, and depreciation expenses. Some accounting frameworks require regular reassessment, especially for significant assets or major market changes. Tax rules may also influence how depreciation and salvage values are treated for fiscal purposes, sometimes limiting deductible depreciation or altering calculations.

Example: A machine costs 100,000 SEK and has an estimated restvärde of 10,000 SEK with a 10-year useful life. The depreciable amount is 90,000 SEK, yielding 9,000 SEK of depreciation per year in straight-line method.

See also: depreciation, asset impairment, residual value, Swedish accounting standards.