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What is Residual Value?

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It is equivalent to at least five percent (5%) of the cost of an asset that the entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset is already of age and in the condition expected at the end of its useful life, unless a more appropriate percentage is determined by an entity based on their operation.

(Reference: Section 2.l, Chapter 10, GAM for NGAs, Vol. I)