Value To The Business

Business, Legal & 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.

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
Modern Language Association (MLA):
Value To The Business. Payroll & Accounting Heaven Ltd. July 09, 2020
Chicago Manual of Style (CMS):
Value To The Business. Payroll & Accounting Heaven Ltd. (accessed: July 09, 2020).
American Psychological Association (APA):
Value To The Business. Retrieved July 09, 2020, from website:

Definition Sources

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

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

This glossary post was last updated: 4th May, 2019 | 1 Views.