net book value


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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
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If an owner's employment is terminated for cause, a "penalty price" such as net book value, some percentage of fair market value or a defined value may be applied.
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The multiple did not decline to 5 or less perhaps because of the underlying book values and the relationship of the price to the net book value as discussed in the following section, return on net assets.
Where "push-down" accounting is not utilized, the acquired company (target) would use only historical net book value and related equity value in its LCT calculations.