Book value is calculated by subtracting any accumulated depreciation from an assets purchase price or historical cost. Alternatively Book Value can be calculated as the sum total of the overall Shareholder Equity of the company. Book value is the net value of a firms assets found on its balance sheet and it is roughly equal to the total amount all shareholders would get if they liquidated the company.
In accounting book value is the value of an asset according to its balance sheet account balance.
The book value is the total equity or net asset value of a company. In the accounting world book value refers to the worth of a particular asset on a companys balance sheet say a piece of property or equipment. Book value of debt is the total amount which the company owes which is recorded in the books of the company. What is the definition of net book value.