Book Value Of Current Assets Formula
Accumulated depreciation per year depreciation x total number of years.
Book value of current assets formula. When it reaches the end of its useful life the nbv should be equal to its salvage value. Total value of the asset value at which the asset is purchased. Net book value original asset cost accumulated depreciation.
Depreciation periodic reduction in the value of the asset amortized as per standards. If the value of bvps exceeds the market value per share the. Calculating net book value.
Other cost include impairment cost and related costs which directly affect the cost of the asset. When compared to the current market value per share the book value per share can provide information on how a company s stock is valued. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.
The formula for calculating nbv is as follows. Book value may also be. Sample calculation of net book value.