Definition of Useful life:
Period during which an asset or property is expected to be usable for the purpose it was acquired. It may or may not correspond with the items actual physical life or economic life.
The (expected) period of time in which a device, vehicle, structure, etc., is productive or in use.
Useful life refers to the estimated duration of utility placed on a variety of business assets, including buildings, machinery, equipment, vehicles, electronics, and furniture. Useful life estimations terminate at the point when assets are expected to become obsolete, require major repairs, or cease to deliver economical results. The estimation of the useful life of each asset, which is measured in years, can serve as a reference for depreciation schedules used to write off expenses related to the purchase of capital goods.
The useful life of an asset is an accounting estimate of the number of years it is likely to remain in service for the purpose of cost-effective revenue generation. The Internal Revenue Service (IRS) employs useful life estimates to determine the amount of time during which an asset can be depreciated. There are a variety of factors that can affect useful life estimates, including usage patterns, the age of the asset at the time of purchase and technological advances.
Meaning of Useful life & Useful life Definition