Residual value definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Residual value can be defined as: Estimated of amount to be recovered at the end of an asset’s useful life; also called salvage value or scrap value. Residual is a term that generally related to property plant and equipment, long term tangible assets, residual value representing the left over, or scrap value, at the end of an assets useful life.
