Where does salvage collide?

In accounting, salvage value (also residual value) is the estimated amount an asset will be worth at the end of its useful life, after which it is scrapped or sold. It is subtracted from the asset's cost to give the depreciable base, so the salvage estimate directly shapes how much depreciation is charged each period and how that expense is distributed. Myers's 1960 Influence of salvage value upon choice of tax depreciation methods examined how the figure interacts with accelerated-depreciation choices. The referent is a book-value estimate at end of service, denominated in currency, and it is unrelated to pulling a cargo off a reef or a neuron recovering.[1]

Unit

The estimated end-of-life value of an asset, in currency

Recovery means

Not applicable

Measured by

Estimated from expected resale or scrap proceeds and used to set the depreciable base and periodic depreciation schedule

In admiralty law, salvage is the service of voluntarily rescuing a vessel or its cargo from peril at sea, and the salvor's legal right to a reward for having done so successfully. The entitlement rests on three classic elements, a real maritime peril, a voluntary service owed under no pre-existing duty, and success in preserving some property, with the award scaled to the danger, the value saved, and the salvor's skill and risk. Mangone's chapter Salvage, finds, and historical wrecks in United States admiralty law lays out the doctrine and its boundary with the separate law of finds. The referent is a legal claim and remedy, measured by the salvage award, distinct from an accountant's residual value or a firefighter's property cover.[2]

Unit

The salvage award owed for a successful voluntary rescue at sea

Recovery means

Not applicable

Measured by

Fixed by a court or arbitrator from the peril faced, the value of property saved, and the salvor's effort, skill, and risk