Mathematically it is represented as Book value of Equity Formula owners contribution Treasury shares Retained earnings Accumulated other incomes. The book value of an asset is the value of that asset on the books the accounting books and the balance sheet of a company. Sample Calculation of Net Book Value.
As a result book value can also be.
To determine a companys book value youll need to look at its balance sheet. Book Value formula calculates the net asset of the company derived by total of assets minus the total liabilities. When it reaches the end of its useful life the NBV should be equal to its salvage value. It is important to realize that the book value is not the same as the fair market value because of the accountants historical cost principle and matching principle.