Salvage value or residual value of an asset, is the percentage of the new value at the end of its economic useful life in the company where it operates.

Assets used by companies with asset renewal policies whose terms are shorter than their total physical useful lives must have the amounts of depreciation not yet realized up to the end of their total useful lives added to their residual values.

Assets used in concessions with validity periods shorter than their total physical useful lives must also have the amounts of depreciation not yet realized up to the end of their total useful lives added to their residual values.

Assets whose economic useful lives are the same as their total physical useful lives have a residual value similar to scrap value.

Mynarski, specialist in Salvage Value and Useful Lives