Book value is the value of assets recorded in accounting. This valuation method does not consider the fluctuation of the current asset market price, nor does it consider the income status of assets, so it is a static valuation standard. It is convenient to get the book value, but the disadvantage is that only the value of various assets at the time of entry is considered, which is divorced from the actual market value.
The book value of assets is usually the cost of assets minus accumulated depreciation or other asset impairment, which is quite different from its market value and economic value in many cases, while the latter is a more accurate measure of the actual value of assets. Therefore, when a company sells assets, the pricing is often not its book value, but the price formed after re-evaluation according to market value or economic value. Selling above the book value will bring profits to the company, while selling below the book value will cause losses.
Question 2: What does book value mean? Book value refers to the net amount of the book balance of an account (usually an asset account) after deducting relevant allowance items. Book balance refers to the actual book balance of an account. As an item, the provisions of the account (such as accumulated depreciation and related assets impairment provision) are not deducted. ).
Net book value refers to the book balance (usually an asset account) after deducting relevant allowance items.
Book value of assets = book balance of assets-depreciation or amortization of assets-provision for impairment of assets.
Question 3: What does the book value of an enterprise mean? As far as inventory is concerned, book value is the value reflected in accounting books. For example, raw materials, 100 yuan, the book value is 100 yuan; 65,438+000 yuan of raw materials have become semi-finished products through the production process of the enterprise, and the book value has increased to 65,438+030 yuan, for example; After further production and processing, it will become a finished product, and the book value may eventually be 150 yuan (but the price may be 200 yuan).
Fair value is the "natural" value of goods. It is not the same as the book value. For example, 100 yuan of raw materials may appreciate, depreciate or remain unchanged due to the price changes of materials in the market after being stored in the enterprise warehouse for a period of time or during the production process of the enterprise; Similarly, the semi-finished products of 130 yuan and the finished products of 150 yuan are the same. Then the selling price of finished products with book value of 150 yuan may be 140 yuan (raw materials have depreciated), 200 yuan (raw materials have not changed) or 250 yuan (raw materials have appreciated).
The book value reflects the value of the enterprise when it acquired assets before, that is, the historical cost. Fair value is the value that is now "taken for granted". Of course, the historical cost can be higher, lower or equal to the present value.
However, according to the requirements of accounting principles, enterprises are recorded at historical cost, taking into account fairness. Therefore, when the fair value is lower than the book value of the enterprise, the enterprise should adopt the method of "asset impairment reserve" to reduce the book value of the enterprise assets; When the fair value is higher than or equal to the book value of the enterprise, only the historical cost (book value) is adopted. In other words, enterprises always try to underestimate and avoid overestimating their assets.
Question 4: What is the book value of assets? Book value of assets = book balance of assets-depreciation or amortization of assets-provision for impairment of book value of assets refers to the net amount of the book balance of an account (usually an asset account) minus relevant allowance items. The book value is the net amount of the book balance of accounts receivable minus the corresponding provision for bad debts. Book balance refers to the actual book balance of an account, without deducting items (such as accumulated depreciation and related assets impairment reserve, etc.). ) to this account. Net book value refers to the book balance (usually an asset account) after deducting relevant allowance items. For fixed assets: book value = original price of fixed assets-impairment reserve-accumulated depreciation (i.e. net value of fixed assets) book balance = original book price of fixed assets; Net book value (net value of fixed assets) = depreciation value of fixed assets = original price of fixed assets-accrued accumulated depreciation. Related to this, there are two easily confused concepts, namely "net fixed assets" and "net fixed assets". The relationship between them is expressed by the formula: net value of fixed assets = original price of fixed assets-accumulated depreciation; Net fixed assets = net fixed assets-fixed assets impairment reserve. For other assets of the enterprise, only the concepts of book value and book balance are involved. The book value is the amount after deducting the provision for impairment; Book balance is the balance of their respective accounts. For example, the book value of fixed assets: it is the amount after deducting accumulated depreciation and accumulated impairment reserve from the cost of fixed assets. The book value of long-term bond investment is: the book balance after deducting impairment reserve. Among them, book balance = face value+accrued interest+unamortized premium (or-unamortized discount).
Question 5: What is the book value? Book value is also called "net value". A stock value. Through the calculation of the company's financial statements, it is the accounting reflection of shareholders' rights and interests, or the value of the company's own funds corresponding to the stocks of that year. The specific calculation formula is: total net stock value = company capital+statutory reserve fund+capital reserve fund+special reserve fund+accumulated surplus-accumulated loss = total net stock value/total stock issuance rights.
Question 6: What do you mean by book balance? What's the difference between it and book value? Book balance refers to the actual book balance of an account, without deducting the allowance items of the account. Book value refers to the net amount of the book balance of an account (usually an asset account) after deducting relevant allowance items. For example, for fixed assets, book value = original price of fixed assets-impairment reserve-accumulated depreciation book balance = original book price of fixed assets.
Question 7: What is the book value of common stock? Net assets of 20 cents per share
Question 8: What does book value mean? Hello, classmate, I'm glad to answer your question!
Book value Book value 1. In other words, the asset value on the balance sheet is equal to the asset cost minus accumulated depreciation. 2. The company's net asset value is equal to the total assets minus intangible assets (patents, goodwill, etc.). ) and liabilities.
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Question 9: The difference between book value and net book value. The book value is the value after deducting various provisions, and the net book value has no provisions. For fixed assets, the book value is the original value minus depreciation and then minus impairment reserve, and the net book value is the original value minus accumulated depreciation.