residual value

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In accounting, the residual value is the value of an asset at the end of its useful life .

General

The residual value of an asset plays a role when it leaves the company ( referred to as “disposal” in accounting terms ) . When leaving (e.g. by scrapping , selling or donating ) the asset can either be written off completely ( book value = zero) or still have a residual value (book value> zero). For Erich Gutenberg , the residual value usually corresponds to the scrap value .

Accounting

The proceeds from the retirement of an asset can be higher or lower than the book value. In the case of higher revenues, an extraordinary income arises , in the case of lower revenues an extraordinary expense , which must be taken into account in the income statement . In the balance sheet , the capitalized assets are to be taken into account as disposals with a negative sign on the assets side by deducting their book value (residual value) from the fixed and current assets.

According to IAS 38.8, the residual value is the value that a company would achieve if the asset were sold after deducting the selling costs if it had already reached the end of its useful life in terms of age and condition. IAS 38.100 stipulates that the residual value of an intangible asset with a finite useful life is to be recognized at zero, unless a third party is to acquire it at the end of its useful life or there is an active market for this asset.

Residual value leasing

With residual value leasing (partial amortization leasing; the most common variant of vehicle leasing), a calculated residual value remains after the end of the contract, which corresponds to the future market value of the leased object. The lessee pays part of the acquisition costs of the leased property and its financing costs . A calculated residual value remains after the end of the contract. Both full amortization and partial amortization contracts have the option of reducing the lessor's total financing costs by paying a portion of the lessee's own financing .

The balloon loan customary in banking is comparable to residual value leasing because its residual debt (last repayment installment) corresponds to the calculated market value.

Car insurance

The value of a vehicle that has been damaged in a traffic accident is also known as its residual value. It is particularly relevant for determining damage if there is a total loss , i.e. the damaged vehicle can no longer be repaired technically or economically. In car insurance , the residual value is the realizable value of a damaged or destroyed vehicle that can still be achieved on the market . In the case of car insurance, only replacement of the replacement value minus the residual value can be requested. According to the Federal Court of Justice (BGH), the standard of the residual value determination by the expert is usually the regional market. If the injured party sells at the price determined by the expert, this is not objectionable. Since there are both commercial wreck recyclers and private providers, some of whom are organized in what is known as the wreck exchange, the wreck revenues that can be achieved vary considerably depending on the interests of the buyer. The estimation of wreck values ​​is therefore difficult.

See also

literature

Individual evidence

  1. ↑ Erich Gutenberg, Introduction to Business Administration , 1958, p. 180
  2. ↑ IFRS 2013, 2013, p. 632
  3. ↑ Marianne Heiß, Strategisches Kostenmanagement in Praxis , 2004, p. 62
  4. ^ BGH, judgment of June 1, 2010, Az .: VI ZR 316/09
  5. ↑ Paul Nechvatal / Bernhard Wielke, Definitions of the Value of a Motor Vehicle , in: Sachverektiven, 2/2011, p. 86 (PDF; 222 kB)