Define: Useful Economic Life

UK Accounting Glossary

Definition: Useful Economic Life


Quick Summary of Useful Economic Life


The period for which the present owner of an asset will derive economic benefits from its use. Under Statement of Standard Accounting Practice 12, Accounting for Depreciation, an asset should be depreciated over its useful economic life.




What is the dictionary definition of Useful Economic Life?

Dictionary Definition


The period for which the present owner of an asset will derive economic benefits from its use.

In standard accounting practices; a fixed asset is depreciated over its useful economic life; an intangible asset is also considered to have a finite useful life, and its value is amortized over this period.


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Full Definition of Useful Economic Life


The period for which the present owner of an asset will derive economic benefits from its use. Under Statement of Standard Accounting Practice 12, Accounting for Depreciation, an asset should be depreciated over its useful economic life.


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Useful Economic Life FAQ's



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Useful Economic Life. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 22, 2019 https://payrollheaven.com/define/useful-economic-life/.
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Useful Economic Life. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/useful-economic-life/ (accessed: November 22, 2019).
American Psychological Association (APA):
Useful Economic Life. PayrollHeaven.com. Retrieved November 22, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/useful-economic-life/

Definition Sources


Definitions for Useful Economic Life are sourced/syndicated from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th May 2019.