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Working out the effective life yourself

Last updated 7 April 2020

The sort of information which you could use to make an estimate of effective life of an asset includes:

  • the physical life of the asset
  • engineering information
  • the manufacturer's specifications
  • your own past experience with similar assets
  • the past experience of other users of similar assets
  • the level of repairs and maintenance commonly adopted by users of the asset
  • retention periods
  • scrapping or abandonment practices.

You work out the effective life of a depreciating asset from the asset's start time.