Written-down value

Written-down value

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

Net Book Value

In accounting, an asset's original price minus depreciation and amortization. For example, if a company bought piece of technological equipment for $100,000 with an absolute physical life of ten years and a patent lasting 20 years, one would account the net book value as the original price and subtract $10,000 per year (for 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 written-down value.
References in periodicals archive ?
Rimmer believes that this decline in the value of the Fund's net assets resulted from the Fund's decision to write down millions of dollars on certain of its assets, including certain promissory notes that were subsequently sold in February 2011 for $10 million, an amount that appears to be several multiples of the written-down value of the Notes.
When the car is sold, the difference between the tax written-down value of the car and the sale proceeds received can be set against company profits in the year of disposal and reduce the company's corporation tax liability.
Although much of the uncertainty associated with new car pricing has disappeared, the fall in values of used cars can severely restrict the growth plans of businesses, as companies can find themselves with assets worth less than their written-down value.
This gain represents the difference between the sales price of the Power-One shares and the written-down value at December 31, 2008 (based on original cost, the Company actually realized a gain on the sale of Power-One shares in the amount of $2,860,000, or $1,773,000 after tax).