The Economic Life of an asset refers to the period over which the asset is expected to generate economic benefits. Different assets have different economic life. Normally, assets with finite economic life are depreciated over their economic life, the period during which the assets are expected to generate economic value. The value of any asset beyond its economic life is referred to as the residual value. For assets with infinite economic life, largely intangible assets, the treatment is to test the assets annually for impairment for restatement at fair value. The economic life of an asset is also referred to as ‘Useful Economic Life’ of the asset.