Book value: Difference between revisions
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1. ''Accounting.'' | |||
The value as recorded in a company’s books, in other words its accounts including its published balance sheet. | The value as recorded in a company’s books, in other words its accounts including its published balance sheet. | ||
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Historically, the book value of an asset was generally its original cost less any depreciation or other write-down in value. | Historically, the book value of an asset was generally its original cost less any depreciation or other write-down in value. | ||
This was distinct from - and could be very different from - prevailing market value, the fair market price which | This was distinct from - and could be very different from - prevailing market value, the fair market price which an asset might be expected to raise if offered for sale. (Or at which a liability might be settled.) | ||
In order to address the problems arising from differences between book values and market values, accounting practice has moved substantially toward a system of book valuation which is aligned more closely with market values. | |||
2. ''Record keeping.'' | |||
A value recorded in an internal record of any kind, not necessarily accounting books and records. | |||
Distinguished from the current market value. | |||
== See also == | == See also == | ||
* [[Balance]] | |||
* [[Balance sheet]] | |||
* [[Book]] | |||
* [[Book entry]] | * [[Book entry]] | ||
* [[Book equity]] | |||
* [[Capital]] | |||
* [[Equity]] | * [[Equity]] | ||
* [[Fair value]] | |||
* [[Historical cost]] | |||
* [[Market/book ratio]] | |||
* [[Market price]] | |||
* [[Market value]] | * [[Market value]] | ||
* [[Market value added]] | * [[Market value added]] | ||
* [[Net assets]] | |||
* [[Net book value]] | * [[Net book value]] | ||
* [[Return on capital employed]] | * [[Return on capital employed]] | ||
* [[Shareholders’ funds]] | * [[Shareholders’ funds]] | ||
* [[Two-way price]] | |||
* [[Write down]] | * [[Write down]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 16:09, 18 July 2022
1. Accounting.
The value as recorded in a company’s books, in other words its accounts including its published balance sheet.
Historically, the book value of an asset was generally its original cost less any depreciation or other write-down in value.
This was distinct from - and could be very different from - prevailing market value, the fair market price which an asset might be expected to raise if offered for sale. (Or at which a liability might be settled.)
In order to address the problems arising from differences between book values and market values, accounting practice has moved substantially toward a system of book valuation which is aligned more closely with market values.
2. Record keeping.
A value recorded in an internal record of any kind, not necessarily accounting books and records.
Distinguished from the current market value.
