loppuarvon

Loppuarvo, also referred to as salvage value or residual value, is the estimated amount that an asset is expected to be worth at the end of its useful life. In accounting and finance, it serves as a key input in depreciation calculations and investment analysis.

In depreciation calculations, the depreciable base is defined as the asset’s cost minus its loppuarvo. Depreciation methods allocate that base over the asset’s useful life; for example, with straight-line depreciation, annual depreciation equals (cost minus loppuarvo) divided by the useful life.

Estimating loppuarvo involves uncertainty and may be revised as conditions change. Factors such as asset usage, technological obsolescence, market demand, and regulatory changes can affect the expected end-of-life value. Under standard accounting frameworks, the residual value should reflect the expected amount realizable at end of use and should not exceed the asset’s fair value.

Practical considerations include periodic review by management and auditors. If assumptions about loppuarvo are revised, depreciation charges may be adjusted prospectively from the date of the change. Revisions can affect reported income, asset values, and tax deductions, depending on the jurisdiction and accounting framework.

In tax contexts, loppuarvo influences allowable depreciation deductions. Different countries and standards (such as IFRS or local GAAP) have specific rules for estimating and adjusting residual values, making estimation an important component of asset valuation and financial reporting.