USING ACCOUNTING METHOD TO CALCULATE THE RESIDUAL VALUE

Through their life in production cycles, the economic assets are carriers of several types of values established by the user's view at a time. The view on the residual value is based on the economic assets which will produce future cash flows, and their value is the present value of that future cash flow. Speaking from an accounting perspective, the vision is one based only on tax considerations related to-depreciation. It is imperative to add to the accounting method of residual value the potential of that asset to generate earnings in order to obtain a meaningful value (realistic) and to respect the principle of fair reflection of the accounting image. This paper is constructed as a plea to use the accounting method in determining the residual value. In addition, we wanted to find a mathematical model to enable the correction of the accounting method for calculating the residual value because it can be successfully used by specialists in the field.