Book value: Difference between revisions
imported>Doug Williamson (Add link.) |
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== See also == | == See also == | ||
* [[Balance]] | |||
* [[Balance sheet]] | |||
* [[Book]] | |||
* [[Book entry]] | * [[Book entry]] | ||
* [[Book equity]] | * [[Book equity]] | ||
* [[Capital]] | |||
* [[Equity]] | * [[Equity]] | ||
* [[Fair value]] | * [[Fair value]] | ||
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.
