List out the factors that determine the useful life of asset?

Factors that determine the useful life of asset

• Pre-determined by legal or contractual limits, e.g. in case of leasehold asset, the useful life is the period of lease.
• The number of shifts for which asset is to be used.
• Repair and maintenance policy of the business organisation.
• Technological obsolescence.
• Innovation/improvement in production method.
• Legal or other restrictions.