net book value

(redirected from Carrying Values)

Net book value

The current book value of an asset or liability; that is, its original book value net of any accounting adjustments such as depreciation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

net book value


written down value

the accounting value of a FIXED ASSET in a firm's BALANCE SHEET that represents its original cost less cumulative DEPRECIATION charged to date.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

net book value

the accounting value of a FIXED ASSET in a firm's BALANCE SHEET that represents its original cost less cumulative DEPRECIATION charged to date.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Dollar carrying values of goodwill and trade name intangible assets in the Gillette Shave Care business.
Carrying values are computed based on financial statements of both subsidiaries as of end-September.
Additionally, Innovaro said that they were delisted from the New York Stock Exchange MKT and began trading on the OTCQB Marketplace, adding that with the continued decline in its market capitalisation, a triggering event resulted whereby management decided that the implied fair value of its intangible assets is under their carrying values and the recorded impairment loss related to continuing operations was about USD2.1m for the full year 2012.
* Use carrying values to measure the assets and liabilities combined in a government merger or transfer of operations;
The company said the carrying values of its McDonnell Douglas MD-80s and Embraer ERJ135s "are no longer recoverable" and that it will take the charge "to write these and certain related long-lived assets down to their estimated fair value".
Trevor O'Hoy, who tendered his resignation last month, initially made the move as Foster's revised its fiscal 2008 earnings outlook and unveiled a non-cash write down to wine asset carrying values and a strategic review of its global wine business.
The company said it did not make any impairment provisions against the carrying values of the fixed assets in each of its subsidiaries this year, having already made provisions of pounds 500,000 last year.
CIT said that its management believes, based on its current assessment of lease equipment carrying values and Independence Air's credit exposure, that the Independence Air filing will not have a material adverse impact on the company's financial results.
Similarly, CEOs and CFOs must be satisfied that the carrying values of their intangible assets and goodwill have been adequately tested for impairment.
banking organizations with the largest commitment to equity investments have about doubled their holdings in the past five or so years, with aggregate investments currently exceeding $30 billion at carrying values. These holdings account for an estimated 90 percent of holdings by all banking organizations of private equities in nonfinancial firms.
For the same asset, the use of straight line depreciation, higher salvage values or longer useful lives will result in higher carrying values and thus increased probability of recognizable impairment losses.