Book Value Of Current Assets Formula
Book value of assets formula.
Book value of current assets formula. The formula for calculating nbv is as follows. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. Calculating net book value.
Book value may also be. Other cost include impairment cost and related costs which directly affect the cost of the asset. Total value of the asset value at which the asset is purchased.
Accumulated depreciation per year depreciation x total number of years. Net book value original asset cost accumulated depreciation. When it reaches the end of its useful life the nbv should be equal to its salvage value.
The calculation of book value for an asset is the original cost of the asset minus the accumulated depreciation where accumulated depreciation is the average annual depreciation multiplied by the age of the asset in years. Sample calculation of net book value. If the value of bvps exceeds the market value per share the.