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.


Advertisement



Full Definition of Value To The Business



Advertisement



Value To The Business FAQ's



Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/value-to-the-business/
Modern Language Association (MLA):
Value To The Business. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 19, 2019 https://payrollheaven.com/define/value-to-the-business/.
Chicago Manual of Style (CMS):
Value To The Business. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/value-to-the-business/ (accessed: November 19, 2019).
American Psychological Association (APA):
Value To The Business. PayrollHeaven.com. Retrieved November 19, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/value-to-the-business/

Definition Sources


Definitions for Value To The Business are sourced/syndicated from:


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