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 ?
It gives entities the option to first assess "qualitative" factors in order to determine the likelihood that a reporting unit's fair value is less than its carrying amount.
In the first step of the goodwill impairment test, the entity compares the carrying amount of the reporting unit containing the subject goodwill and the reporting unit's fair value.
The first step compares the carrying amount of the reporting unit--including goodwill, with its fair value.
The carrying amount of an unidentifiable intangible asset shall continue to be amortized as set forth in paragraph 5 of Statement 72 after October 1, 2002, unless the transaction in which that asset arose was a business combination.
Disclosures that are in compliance with SFAS 107, as amended by SFAS 119, should present the fair value of derivative financial instruments together with the related carrying amounts.
The loss, if any, resulting from changes in the carrying amounts of asset to be disposed of that arises from application of this Statement.
The investor in a subsidiary, joint venture, or associate has recognized a dividend from the investee when evidence exists that the investment's carrying amount in the separate financial statements exceeds the carrying amounts in the consolidated financial statements.
Moreover, with significant doubts about the relevance of recording assets at their hypothetical fair values, it would seem that the interests of investors are not well served if those assets will not actually produce the cash flows that are implied in their carrying amounts.
The proposed statement also does not apply to formations of joint ventures or combinations involving businesses under common control, which would continue to be accounted for at their carrying amounts.
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.