Restverdi

Restverdi, also known as residual value or salvage value, is the estimated amount that an asset is expected to be worth at the end of its useful life. In accounting and finance, restverdi is used to determine the depreciable base of an asset and thus to calculate annual depreciation expenses. It is not the asset’s current market value, nor the cost to dispose of the asset, but an estimate of its value at the end of the period during which the asset remains in use.

Depreciation is typically computed as (cost minus restverdi) divided by the asset’s useful life. The higher the estimated restverdi, the lower the annual depreciation expense; vice versa. Restverdi is estimated at acquisition and may be revised if expectations about the asset’s use, wear, or market conditions change. Changes are generally accounted for prospectively, affecting depreciation going forward.

Factors influencing restverdi include the asset type, expected wear, technological obsolescence, maintenance, usage patterns, and disposal costs. In leasing arrangements, the lessee or lessor may also rely on a guaranteed or expected residual value to determine lease payments and terms.

Example: A machine costs 500,000 and is estimated to have a restverdi of 50,000 after a 10-year life. Annual depreciation would be (500,000 − 50,000) / 10 = 45,000 per year. After three years, carrying amount would be 500,000 − 3 × 45,000 = 365,000, assuming no impairment.

Restverdi is distinct from fair value and from acquisition or disposal costs, though all can influence asset decisions. Accounting standards such as IFRS require reasonable estimation of restverdi for depreciation purposes.