Editing Book value (section)

{{Short description|Value of an asset according to its balance sheet account balance}}
{{Use dmy dates|date=March 2020}}
In accounting, '''book value''' (or '''carrying value''') is the value of an [[asset]] according to its [[balance sheet]] account balance.<ref>{{cite web |url=https://www.nysscpa.org/professional-resources/accounting-terminology-guide |title=Accounting Terminology Guide - ''Book Value'' |publisher=New York State Society of CPAs |quote=Amount that an asset or liability shows on the balance sheet of a company. Also known as carrying value.}}</ref> For assets, the value is based on the original cost of the asset less any [[depreciation]], [[amortization (accounting)|amortization]] or [[impairment cost]]s made against the asset. Traditionally, a company's book value is its {{clarify|date=September 2020 |reason=Is "total assets" measured at historical cost or is it marked to market? Or is it sometimes one and sometimes the other?|text=total assets}} minus [[intangible asset]]s and liabilities.<ref>Hermanson, Roger H., James Don Edwards, R. F. Salmonson, (1987) ''Accounting Principles'' Volume II, Dow Jones-Irwin, p. 694. {{ISBN|1-55623-035-4}}</ref> However, in practice, depending on the source of the calculation, book value may variably include [[Goodwill (accounting)|goodwill]], [[intangible asset]]s, or both.<ref name = "Security Analysis">Graham and Dodd's ''Security Analysis'', Fifth Edition, pp 318 – 319</ref> 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.