restvärden

Restvärden, or restvärdet i singular, is the estimated value of an asset at the end of its useful life. In accounting and finance it is commonly translated as salvage value or residual value. Restvärdet represents the amount for which the asset could be sold after depreciation and forms the basis of depreciation calculations.

In depreciation accounting, the depreciable base is normally defined as the asset's cost minus its restvärde. The annual depreciation expense is that base divided by the estimated useful life. For example, an asset with a cost of 100, a restvärde of 10, and a useful life of 5 years would have an annual depreciation of (100-10)/5 = 18 per year. The asset's book value declines toward the restvärde but should not fall below it.

Determining restvärdet involves judgment about future resale or salvage potential, expected market conditions, and the asset's condition at the end of its life. It can be revised if expectations change, which in turn affects depreciation charges and asset valuations. In practice, restvärden influence replacement decisions, asset disposals, and tax considerations in some jurisdictions.

Outside depreciation, the term is used in asset valuation and leasing to denote any expected remaining value at the end of a term. Restvärden is related to, but distinct from, impairment considerations, which concern recoverable amounts that may be lower than carrying values.

See also: salvage value, residual value, depreciation.