salvage value

In accountancy, depreciation refers to two aspects of the same concept:

• The decrease in value of assets (fair value depreciation)
• The allocation of the cost of assets to periods in which the assets are used (depreciation with the matching principle)

Residual value is one of the constituents of a leasing calculus or operation. It describes the future value of a good in terms of absolute value in monetary terms and it is sometimes abbreviated into a percentage of the initial price when the item was new.