Net asset value

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Net asset value (NAV)

The value of a fund's investments. For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or redemption charge. For a closed-end fund, the market price may vary significantly from the net asset value.

Net Asset Value

In stocks and businesses, an expression of the underlying value of the company. That is, it is a statement of the value of the company's assets minus the value of its liabilities. One way of thinking about the net asset value is that it is the underlying value of a company, not the value dictated by the supply and demand of shares or its market capitalization. It is also called the book value.

Net asset value (NAV).

The NAV is the dollar value of one share of a fund. It's calculated by totaling the value of all the fund's holdings plus money awaiting investment, subtracting operating expenses, and dividing by the number of outstanding shares.

A fund's NAV changes regularly, though day-to-day variations are usually small.

The NAV is the price per share an open-end mutual fund pays when you redeem, or sell back, your shares. With no-load mutual funds, the NAV and the offering price, or what you pay to buy a share, are the same. With front-load funds, the offering price is the sum of the NAV and the sales charge per share and is sometimes known as the maximum offering price (MOP).

The NAV of an exchange traded fund (ETF) or a closed-end mutual fund may be higher or lower than the market price of a share of the fund. With an ETF, though, the difference is usually quite small because of a unique mechanism that allows institutional investors to buy or redeem large blocks of shares at the NAV with in-kind baskets of the fund's stocks.

net asset value

the asset value of a company to its ordinary shareholders. This consists of the BALANCE SHEET value of total assets (FIXED ASSETS plus CURRENT ASSETS) LESS CURRENT LIABILITIES, DEBENTURES, LOAN STOCK and PREFERENCE SHARES. These net assets can be divided by the number of ordinary shares to indicate the net asset value per share.
References in periodicals archive ?
2) Allocate the previous carrying amount between the assets sold, if any, and the retained interests, if any, based on their relative fair values at the date of transfer.
For example, in disclosing information about "the nature and carrying amount for each individual investment or group of investments that represents a significant concentration of market risk," the specific method of disclosure was noted and is provided on that level in the accompanying tables.
When a company recognizes an impairment loss for an asset group, it must allocate the loss to the long-lived assets in the group on a pro rata basis using their relative carrying amounts.
At each balance sheet date, the Group reviews the carrying amounts of its
It may be prohibited from doing so, however, if a hypothetical market participant (for example, the most efficient widget-maker) would be able to operate the plant at a higher capacity and with greater efficiency, resulting in a fair value that is in excess of Company C's carrying amount.
There also are required disclosures regarding changes in the carrying amount of goodwill.
The loss, if any, resulting from changes in the carrying amounts of asset to be disposed of that arises from application of this Statement.
Notes payable to banks: The carrying amounts of the company's borrowings under its short-term credit agreements approximate their fair value.
Accounting rules provide some guidance for recording the inability to fully recover the carrying amounts of current assets.
Additionally, accounting for carrying amounts is also very diverse and contributes to the inconsistent disclosure of the carrying amounts of the derivative instruments.
The carrying amounts of any recognized intangible assets that meet the recognition criteria in paragraph 39 of Statement 141 that have been included in the amount reported as an unidentifiable intangible asset and for which separate accounting records have been maintained (as discussed in footnote 25 of Statement 141) shall be reclassified and accounted for as assets apart from the unidentifiable intangible asset and shall not be reclassified to goodwill.
According to the FASB, Interpretation 47 will result in (a) more consistent recognition of liabilities relating to asset retirement obligations, (b) more information about expected future cash outflows associated with those obligations, and (c) more information about investments in long-lived assets because additional asset retirement costs will be recognized as part of the carrying amounts of the assets.