Book value: Difference between revisions

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imported>Doug Williamson
(Link with Book entry.)
imported>Doug Williamson
(Link with Write down page.)
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* [[Return on capital employed]]
* [[Return on capital employed]]
* [[Shareholders’ funds]]
* [[Shareholders’ funds]]
* [[Write down]]

Revision as of 08:38, 22 August 2017

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 the asset might be expected to raise if offered for sale.


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 much more closely with market values.


See also