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FIN 47: The Future Is Now Under the new standard, many companies may have to book future cleanup costs, whether or not they can be ascertained today.

Marie Leone, CFO.com | US
February 6, 2006

Salvage Value of Fixed Assets

In light of many years experience managing fixed assets for small to fortune 50 firms, I have noticed that the salvage value of these assets are no longer used.

In light of the FIN 47, maybe that salavage value should be restated as envinromental cost since more than plants, land, land improvements, manufacturing equipment and the like have an enviromental cost to dispose of them (like the computer monitor you are reading this on due to the mercury within it).

Thus the depreciable or amortizable value would be the actual cost of the project to get the asset to revenue generation minus the environmental cost to clean up the asset.

Posted by Bob Kinsler | Aug 15, 2006 1:24 PM ET