rajakäyttöarvo

Rjakäyttöarvo is a Finnish term that translates to "residual value" or "salvage value" in English. It refers to the estimated value of an asset at the end of its useful life. This value is what a company can expect to receive from selling or disposing of the asset when it is no longer needed for its primary operational purpose.

The calculation of rjakäyttöarvo is an important component in accounting and financial reporting. It is used in determining depreciation expenses over the asset's life. When an asset is depreciated, its cost is spread over its useful economic life. The depreciation expense each period is calculated as the asset's cost minus its rjakäyttöarvo, divided by its useful life. This ensures that the asset's book value on the balance sheet does not fall below its estimated residual value.

Estimating rjakäyttöarvo involves considering various factors, such as the asset's condition, market demand for used assets of that type, potential for recycling or resale, and disposal costs. The accuracy of this estimation can significantly impact a company's reported profits and the carrying value of its assets. Different accounting standards may have specific guidelines on how rjakäyttöarvo should be determined and presented.