An asset's book value is equal to its carrying value on the balance sheet, and companies calculate it by netting the asset against its accumulated depreciation.
 | | Book Value | | An asset's book value is equal to its carrying value on the balance sheet, and companies calculate it netting the asset against its accumulated depreciation. Book value is also the net asset value of a company calculated as total assets minus intangible assets (patents, goodwill) and liabilities. For the initial outlay of an investment, book value may be net or gross of expenses such as trading costs, sales taxes, service charges and so on. | | Breaking it Down: | | Book value is also known as "net book value" and, in the U.K., "net asset value." As the accounting value of a firm, book value has two... | | Read More » | | Book Value Reduction | | A book value reduction takes place when writing down the value of an asset's carry value, based on changes in current market values. | | Read More » | | | Public Book (Of Orders) | | The public book (of orders) is an electronic list containing all of the buy and sell orders for a specific security that is placed by the public. | | Read More » | | | Book-to-Market Ratio | | The book-to-market ratio is a ratio used to find the value of a company by comparing the book value of a firm to its market value. | | Read More » | | | Depreciated Cost | | Depreciated cost is the original cost of a fixed asset less accumulated depreciation; this is the net book value of the asset. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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