Define: Value To The Business

UK Accounting Glossary

Definition: Value To The Business


Quick Summary of Value To The Business


An idea used in deciding on a measure of current value.



What is the dictionary definition of Value To The Business?

Dictionary Definition


In current cost accounting, the value to the business (deprival value) is the value of an asset taken as the lower of the replacement cost and the recoverable amount.

The latter is the greater of the net realisable value (NRV) and the net present value (NPV).

It is claimed that generally an asset should never be worth more to a business than it’s replacement cost, because if the business were deprived of the asset it would replace it.

If an asset is not worth replacing, then it would be sold (net realisable value), unless the net present value was higher.


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https://payrollheaven.com/define/value-to-the-business/
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Value To The Business. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 28, 2020 https://payrollheaven.com/define/value-to-the-business/.
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Value To The Business. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/value-to-the-business/ (accessed: February 28, 2020).
American Psychological Association (APA):
Value To The Business. PayrollHeaven.com. Retrieved February 28, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/value-to-the-business/

Definition Sources


Definitions for Value To The Business are sourced/syndicated and enhanced 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.