Define: Book Value

UK Accounting Glossary

Definition: Book Value


Quick Summary


The book value of an asset or group of assets is the price at which they were originally acquired, in many cases equal to purchase price.



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Dictionary Definition



Full Definition


The book value of an asset or group of assets is the price at which they were originally acquired, in many cases equal to purchase price. Book value is therefore relevant insofar as it forms the basis of various calculations e.g. of nominal capital gains (current value divided by book value), of amortized value (book value adjusted for depreciation) and of several financial ratios (e.g. price to book value [P/BV]).


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