What is "book value"

n. 1 The value of an asset as reflected on an entity's accounting books, without accounting for appreciation or depreciation. 2 The price for which an item or service should be bought or sold, usually as related in a printed collection of prices for similar items or services.

n. the value at which an asset is carried on a balance sheet; equals cost minus accumulated depreciation

In accounting, book value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset. Traditionally, a company's book value is its total assets minus intangible assets and liabilities. However, in practice, depending on the source of the calculation, book value may variably include goodwill, intangible assets, or both. The value inherent in its workforce, part of the Intellectual capital of a company, is always ignored. When intangible assets and goodwill are explicitly excluded, the metric is often specified to be "tangible book value".

In the United Kingdom, the term net asset value may refer to the book value of a company.