What is Book Value?

Book Value is the value of an asset according to its account balance as shown on the balance sheet, and the value is based on the original cost of the asset less any depreciation, amortisation, or impairment costs made against the asset.Historically, the book value is a company's total assets minus its intangible assets and liabilities. However, in practice, and depending on the type of business involved and the type of calculation being employed, book value varies substantially, according to values attributed to goodwill or intangible assets or any combination thereof ('tangible book value' excludes both of the previous two factors).