CG76704 - Wasting assets: introduction: predictable life

The predictable life of an asset is the length of time it will be usable by the person who has acquired it. In some cases, this may be obvious. A lease of land may be for a specific period. That period is then the predictable life of the lease as far as the lessee is concerned.

In other cases, it will not be obvious and you have to estimate the predictable life. In many cases, you will only have to do this after the asset has been disposed of. However, you still have to look at the position as it was when the asset was originally acquired by the person making the disposal.