Book value: Difference between revisions

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== See also ==
== See also ==
* [[Balance]]
* [[Balance sheet]]
* [[Book]]
* [[Book]]
* [[Book entry]]
* [[Book entry]]

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.


See also