Business, Legal & Accounting Glossary
The value of an asset for tax purposes after taking account of it’s reduction in value below the initial cost, as a result of it’s use in the trade.
The book value of an asset after allowing for depreciation and amortization.
The Written-down value (WDV) is the value of an asset for tax purposes after taking account of its reduction in value below the initial cost, as a result of its use in the trade.
An asset acquired for a trade is eligible for capital allowances.
A writing down allowance of 25% is available in the 1st year of purchase, which is deducted from the initial cost to establish the written-down value.
In the following year, the written-down value is subject to the 25% writing-down allowance, which is deducted to arrive at the written-down value at the end of the 2nd year.
The net value of an asset, i.e. its original cost (its book value) minus depreciation and amortization.
net book value
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This glossary post was last updated: 19th November, 2021 | 0 Views.