Net asset value

(redirected from Carrying Amount)
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Related to Carrying Amount: book value, Fair value

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 ?
the initial carrying amount of an asset or liability is different in time from its initial tax base.
If the fair value exceeds the carrying amount, goodwill is not impaired and no further testing is required; however, if the carrying amount exceeds the computed fair value, then Step 2 is necessary.
An organization electing to perform a qualitative assessment no longer would be required to calculate the fair value of an indefinite-lived intangible asset unless the organization determiners, based on a qualitative asset unless the organization determines, based on a qualitative assessment, that it is "more likely than not" that the asset's fair value is less than its carrying amount.
The first step compares the carrying amount of the reporting unit--including goodwill, with its fair value.
For real estate entities that issue financial statements in accordance with accounting principles generally accepted in the United States, the management has to assess, on a periodic basis, if there are any indicators that the carrying amount of the real estate to be held and used may not be recoverable.
The difference between the carrying amount of a policy (acquisition cost plus capitalized premiums plus income recognized) and its face value is recognized as income ratably over the insured's life expectancy.
The annual reports of these banks were examined for the disclosure of the carrying amount and fair value of the derivative instruments on activities other than trading.
An impairment loss would be recognized if the carrying amount of an intangible asset is not recoverable and the carrying amount exceeds its FMV.
If these cash flows are less than the carrying amount of the asset(s), the entity should recognize an impairment loss.
An entity shall review long-lived asset and certain identifiable intangibles to be held and used for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.
Subtracting the market value from the carrying amount would result in the impairment loss.