net book value

(redirected from Written Down Value)
Also found in: Acronyms.

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

or

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 ?
On the books of account, their written down value might be rather low, but in terms of replacement value, they are quite significant.
The written down value of Webb Fasteners' stock is estimated at pounds 1.25million.
Finally, does the trade price (written down value) of the asset allow the purchaser to compete effectively given product quality?
In some cases, Courts have held that if intangible assets acquired under a slump sale agreement are in the nature of business or commercial rights, including the right to sell products through the network created by the person from whom the rights are acquired, the consideration for such rights would be depreciable at the rate of twenty five percent on the written down value method.
Under this concept, depreciation of all assets coming within specified categories would be calculated by applying the depreciation rate on the written down value which would be computed as follows: