Comparative law notes
the period of time that it will be economically feasible to use an asset. Useful life is used when calculating the depreciation on an asset, and is not the same as the actual physical life of the asset. A computer might physically last for 100 years, but it might be useful for only 3-4 years years because of advancements in technology enhancements. Thus, for financial statement purposes, the computer will be depreciated over three years.