Auteur/autrice : Vaucluse Info

Companies take into consideration the matching principle when making assumptions for asset depreciation and salvage value. This is often heavily negotiated because, in industries like manufacturing, the provenance of their assets comprise a major part of their company’s top-line worth. A business owner should ignore salvage value when the business itself has a short life expectancy, the asset will last less than one year, or it will have an expected salvage value of zero. If a business estimates that an asset’s salvage value will be minimal at the end of its life, it can depreciate the asset to $0 with…