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Home > QFINANCE Dictionary > Definition of NBV

Definition of

NBV

Accounting abbr

original cost of asset minus depreciation net book value: the historical cost of an asset less any accumulated depreciation or other provision for diminution in value, for example, reduction to net realizable value, or asset value which has been revalued downward to reflect market conditions.

NBV - Related Articles
  • Residual Value

    Calculations

    To calculate residual value using this methodology, each period of depreciation is based on the previous year’s net book value, estimated lifespan, and a factor of 2 (known as the double-declining balance). For example: Depreciation expense = Previous period NBV × Factor ÷ N For the double-declining balance method, using the vehicle example from above, we compute

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Definitions of ’NBV’ and meaning of ’NBV’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’NBV’ and other financial terms with our online QFINANCE Financial Dictionary.

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