Define: Net Book Value

UK Accounting Glossary

Definition: Net Book Value


Quick Summary of Net Book Value


Cost of non-current (fixed) asset minus accumulated depreciation.




What is the dictionary definition of Net Book Value?

Dictionary Definition


Net book value is the value at which a company carries an asset on its balance sheet. It is equal to the cost of the asset minus accumulated depreciation.

NBV = Cost of The Assets – Accumulated Depreciation.


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Full Definition of Net Book Value



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Net Book Value FAQ's


How do you calculate net book value?

People often use the term net book value interchangeably with net asset value (NAV), which refers to a company’s total assets minus its total liabilities.

Net Book Value = Cost of the Asset – Accumulated Depreciation

What is net book value of a company?

Net book value (NBV) is the amount at which an organisation records an asset in its accounting records. Net book value is calculated as the original cost of an asset, minus any accumulated depreciation, accumulated depletion, accumulated amortisation, and accumulated impairment.


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Net Book Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/net-book-value/ (accessed: November 22, 2019).
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Net Book Value. PayrollHeaven.com. Retrieved November 22, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/net-book-value/

Definition Sources


Definitions for Net Book Value are sourced/syndicated from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.