Net assets and Net book value: Difference between pages

Revision as of 15:43, 21 August 2013

(NBV).

Accounting.

The net value of a fixed asset reported in financial statements.

For example, its historical cost purchase price LESS the accumulated provision for depreciation.

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-''Financial reporting - balance sheet.''
+(NBV).
-Net assets are equal to Total assets MINUS Total liabilities.
+''Accounting''.
+The net value of a fixed asset reported in financial statements.
+For example, its historical cost purchase price LESS the accumulated provision for depreciation.
-:<span style="color:#4B0082">'''''Example: net assets calculation'''''</span>
-:Other assets are 70.
-:Cash is 30.
-: Total assets = Other assets + Cash = 70 + 30
-:Total assets    =        '''100'''
-:Debt is (40)
-:Other liabilities are (10)
-:Total liabilities = Debt + Other liabilities = (40) + (10)
-:Total liabilities   =      '''(50)'''
-:Total assets - Total liabilities = 100 - 50
-:Net assets       =         '''50'''
-Net assets are also equal to the book value of equity, also known as shareholders' funds.
-The book value of total equity is equal to the book value of the company's net assets.
-These two items in a balance sheet always balance - so long as there are no errors.
-This is what is meant by a balance sheet "balancing".
 == See also ==
-* [[Assets]]
-* [[Balance sheet]]
 * [[Book value]]
-* [[Equity]]
+* [[Depreciation]]
-* [[Financial reporting]]
-* [[Goodwill]]
-* [[Group accounts]]
-* [[Liabilities]]
-* [[Minority interest]]
-* [[Net worth]]
-* [[Non-controlling interest]]
-* [[Return on assets]]
-* [[Return on net assets]]
-[[Category:Accounting,_tax_and_regulation]]