Book value
Financial Accounting glossary · Assets: Cash, Receivables, Inventory, PP&E & Intangibles
Definition
Carrying value of an asset on the balance sheet (acquisition cost less accumulated depreciation/amortization/impairment).
Book value in plain English
Book value is what an asset is currently worth *on the company's records* — not its shiny sticker price, but what's left after wear-and-tear is subtracted. You take what you originally paid for it, then subtract the value it has "used up" over time (depreciation) plus any drop from damage or obsolescence (impairment). Like a car you bought for $20,000 that's now listed at $14,000 in your records because you've counted a few years of aging — that $14,000 is its book value.
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