The cost of replacing the service potential of an existing asset, by reference to some measure of capacity, with an appropriate modern equivalent asset.

IIMM

The cost of restoring an existing asset’s gross service potential on deprival, whether by reproduction of the existing asset or replacement with a reference asset.

DERM

The replacement cost of an existing asset less an allowance for wear or consumption having regard for the remaining economic life of the existing asset.

IIMM

(ODRC) The optimised replacement cost after deducting an allowance for wear or consumption to reflect the remaining economic or service life of an existing asset. ODRC is the surrogate for valuing assets in use where there are no competitive markets for assets, or for their services or outputs.

IIMM

(ORC) The minimum cost of replacing an existing asset with modern equivalent assets offering the same level of service. The optimisation process adjusts the value for technical and functional obsolescence, surplus assets or over-design.

IIMM