obsolescence

A reduction or ending of an asset’s *useful economic life (or sales value) through technological or other changes. Obsolescence is an important factor in the *amortization of *long-term assets and the valuation of inventory The operational effectiveness of an item of plant and equipment can end for many reasons: (i) the inability to obtain spare parts, (ii) the diminishing availability of maintenance engineers, and (iii) inefficiency in comparison to other assets available in the marketplace. If an asset becomes obsolete before the end of its amortization period, it is normally subject to immediate * write-off (less any *scrap value). For items of inventory, changing fashions and shifts in customer demand can signal a drastic reduction in sales value. Many manufacturers rely on planned obsolescence of their products to maintain ongoing demand.

Auditor's dictionary. 2014.

Look at other dictionaries:

  • OBSOLESCENCE — Qu’une technique nouvelle jugée plus «rentable» se répande aux dépens d’une technique utilisée antérieurement, qu’un équipement nouveau devienne disponible et donne au travail une productivité plus élevée en abaissant les coûts de production, les …   Encyclopédie Universelle

  • obsolescence — ob‧so‧les‧cence [ˌɒbsəˈlesns ǁ ˌɑːb ] noun [uncountable] when a product, system etc is becoming no longer useful because something better is available, possible etc: • Now markets are subject to the faster obsolescence of products due to greater …   Financial and business terms

  • obsolescence — ob·so·les·cence /ˌäb sə les əns/ n: a loss in the utility or value of property that results over time from intrinsic limitations (as outmoded facilities) or external circumstances ◇ Obsolescence is usu. distinguished from depreciation and… …   Law dictionary

  • obsolescence — (n.) 1809; see OBSOLESCENT (Cf. obsolescent) + ENCE (Cf. ence). Phrase Planned obsolescence coined 1932, revived as a disparaging term 1950s …   Etymology dictionary

  • Obsolescence — Ob so*les cence, n. [See {Obsolescent}.] The state of becoming obsolete. [1913 Webster] …   The Collaborative International Dictionary of English

  • Obsolescence — Obsolete redirects here. For the album by Fear Factory, see Obsolete (album). Obsolescence is the state of being which occurs when an object, service or practice is no longer wanted even though it may still be in good working order. Obsolescence… …   Wikipedia

  • Obsolescence — Sur les autres projets Wikimedia : « Obsolescence », sur le Wiktionnaire (dictionnaire universel) L’obsolescence[1] est le fait pour un produit d’être dépassé, et donc de perdre une partie de sa valeur en raison de la seule… …   Wikipédia en Français

  • obsolescence — A fall in the value of an asset as a result of its age. For example, plant and equipment may not have actually worn out but may have become out of date because technology has advanced and more efficient plant has become available. It also applies …   Big dictionary of business and management

  • obsolescence — Mktg the decline of products in a market due to the introduction of better competitor products or rapid technology developments. Obsolescence of products can be a planned process, controlled by introducing deliberate minor cosmetic changes to a… …   The ultimate business dictionary

  • obsolescence — noun Date: circa 1828 the process of becoming obsolete or the condition of being nearly obsolete < the gradual obsolescence of machinery > < reduced to obsolescence > …   New Collegiate Dictionary

  • obsolescence — n. built in; planned obsolescence * * * [ˌɒbsə les(ə)ns] planned obsolescence built in …   Combinatory dictionary

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