Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Residual Value
« Back to Glossary IndexCategory: Accounting and Finance
The estimated worth of an asset at the end of its useful life. This value is crucial in calculations involving depreciation, such as in the determination of an asset’s book value. It represents the anticipated market or salvage value of the asset after accounting for depreciation. Residual value is a key factor in methods like the straight-line and declining balance depreciation, impacting how the cost of the asset is allocated over time. Accurate estimation of residual value is essential for precise financial reporting and effective decision-making regarding investments and asset management.
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