In accounting, book value or carrying value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or Impairment costs made against the asset. Traditionally, a company's book value is its total assets minus intangible assets and liabilities. However, in practice, depending on the source of the calculation, book value may variably include goodwill, intangible assets, or both. When intangible assets and goodwill are explicitly excluded, the metric is often specified to be "tangible book value".
In the United Kingdom, the term net asset value may refer to the book value of a company.
Read more about Book Value: Asset Book Value, Net Asset Value, Corporate Book Value, Tangible Common Equity, Stock Pricing Book Value
Famous quotes containing the word book:
“If the book is good, is about something that you know, and is truly written, and reading it over you see that this is so, you can let the boys yip and the noise will have that pleasant sound coyotes make on a very cold night when they are out in the snow and you are in your own cabin that you have built or paid for with your work.”
—Ernest Hemingway (1899–1961)