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Definition: Foreseen obsolescence

National accounts

Foreseen obsolescence is the loss in value on an asset through obsolescence that the purchaser was expecting to occur when the asset was acquired. Foreseen obsolescence is included in consumption of fixed capital.
Organisation for Economic Co-operation and Development (OECD), "Measuring Capital - OECD Manual: Measurement of Capital Stocks, Consumption of Fixed Capital and Capital Services", Annex 1: Glossary of technical terms used in the Manual, Paris, 2001