jääkväärtust

Jääkväärtust, meaning "residual value" in English, refers to the estimated worth of an asset at the end of its lease term or useful life. This concept is particularly relevant in financial contexts, such as leasing agreements and depreciation calculations for accounting purposes. When a company leases an asset, such as a vehicle or machinery, the lease agreement often specifies a residual value. This is the amount the asset is expected to be worth when the lease contract expires. The residual value is a crucial factor in determining the lease payments, as it influences the total depreciation amount over the lease period.

In accounting, residual value, also known as salvage value, is used in depreciation calculations. It represents the estimated amount that an asset can be sold for at the end of its useful life, minus any costs associated with the sale. This value is subtracted from the asset's original cost to arrive at the depreciable base, which is then used to calculate periodic depreciation expense. For example, if an asset costs $10,000 and has an estimated residual value of $1,000, its depreciable base is $9,000. Accurate estimation of residual value is important for financial reporting, as it impacts the carrying value of assets on the balance sheet and the recorded expenses on the income statement. Fluctuations in market conditions and technological advancements can affect the actual residual value of an asset compared to its initial estimate.