Written-Down Value

Written-down value

The book value of an asset after allowing for depreciation and amortization.

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Written-Down Value

In accounting, an asset's original price minus depreciation and amortization. That is, if a company bought a piece of technological equipment for $100,000 with an absolute physical life of 10 years and a patent lasting 20 years, one would account the net book value as the original price and subtract $10,000 per year (depreciation due to reduced physical life) and $5,000 per year (for amortization).

In accounting a company, the net book value is the value of the company's assets minus the value of its liabilities and intangible assets. Put another way, the book value is the shareholders' equity, or how much the company would be worth if it paid of all of its debts and liquidated immediately. It is also known as the net book value.