Term:
Normal obsolescence
Definition:
Normal obsolescence is the loss in value of an asset through obsolescence that the purchaser was expecting to occur when the asset was acquired. It is a synonym for “foreseen” obsolescence and is included in consumption of fixed capital
Domain:
Economics & National Accounts
Source:
Measuring Capital: OECD Manual, Annex 1 Glossary of Technical Terms Used in the Manual, OECD, 2001
