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:
“The demonstrations are always early in the morning, at six o’clock. It’s wonderful, because I’m not doing anything at six anyway, so why not demonstrate?... When you’ve written to your president, to your congressman, to your senator and nothing, nothing has come of it, you take to the streets.”
—Erica Bouza, U.S. jewelry designer and social activist. As quoted in The Great Divide, book 2, section 7, by Studs Terkel (1988)