How to understand the book balance, net book value and book value of an asset?

About the difference between book value, book balance, and net book value:

For fixed assets:

Book value Original value of fixed assets Provision for impairment Accrued accumulated depreciation;

Book Balance The original book value of the fixed asset;

Net book value Depreciation value of fixed assets Original value of fixed assets Accrued depreciation.

For the other assets of the enterprise, only the concepts of book value and book balance are involved. The carrying amount is the amount after deducting the provision for impairment; The book balances are the amounts of the respective account balances.

The net amount above seems to be only for accounts receivable, net accounts receivable accounts receivable balance - bad debt provision.

Book value, book balance, and net book value are three different concepts.

1. Book value refers to the net amount of the book balance of an account (usually an asset account) minus the relevant allowances. 2. The book balance refers to the actual book balance of an account, without deducting the items that are used as allowances for the account (such as accumulated depreciation, impairment provisions for related assets, etc.). 3. The net book value refers to the depreciation (amortization) value of the book balance of the asset after deducting depreciation or amortization.

Calculation of different asset values1. Accounts receivable.

The carrying amount of accounts receivable is the net amount of the carrying balance of accounts receivable minus the provision for bad debts of the allowance item. The book balance of accounts receivable refers to the actual balance of accounts receivable, excluding allowances. Book Balance = Original Book PriceBook Value = Book Balance - Provision for Bad Debts.

The original book value, book value, book balance, and net book value are mainly arguments for the description of asset value from the accounting perspective, and the differences between the four are as follows:

Fixed assets: 1. Book balance The original book price of fixed assets.

2. Net book value Accumulated depreciation accrued at the original price of fixed assets.

3. Book value, original value of fixed assets, provision for impairment of fixed assets, accumulated depreciation.

4. The original book value is the initial recorded value.

Intangible assets: 1. Book balance The original book value of intangible assets.

2. Net book value, original price of intangible assets, accumulated amortization.

3. Book value The original price of intangible assets before the town Provision for impairment of intangible assets Accumulated amortization.

4. The original book value is the initial recorded value.

Investment properties that are subsequently measured on a cost model:

1. Original book price, book balance, net book value, book balance, accumulated depreciation (amortization) 2, book value, book balance, accumulated depreciation (amortization), impairment provision.

Investment real estate subsequently measured at fair value:

Since no provision is made for depreciation, amortization, and impairment, its book value = book balance.

Other assets: 1. Original book price = book balance.

2. Book value Book balance Provision for impairment of assets.

There are three main differences between net book value, book balance and book value, which are different concepts, different sizes and different calculation formulas, as follows:

The concepts of net book value, book balance, and book value are different.

Net book value is the net amount of the original value of an asset minus depreciation or amortization. In fact, the net book value only considered the issue of depreciation and amortization, and did not consider the issue of impairment. For assets, depreciation or amortization is certainly inevitable, while impairment is a special case.

The book balance refers to the recorded value of an asset. In the case of assets, in general, the book balance of the asset is the purchase of the asset**. For example, for fixed assets, the original value of the fixed assets purchased by the enterprise is the book balance of the fixed assets.

Book value is the carrying balance of an asset minus depreciation or amortization, minus the impairment of the asset. In the case of an asset, the book value is the current value of the asset. For fixed assets, its book value is the current market.

The size of the net book value, book balance, and book value is different.

For assets, in general, the book balance is the largest, followed by the net book value, and the book value is the smallest.

Therefore, for a company, the book value of assets is the most important value. After all, book value takes into account the risk of impairment and realization, which will directly affect the inflow and outflow of economic resources of enterprises.

The formulas for calculating the net book value, book balance, and book value are different.

1. Net book value = depreciation value of fixed assets = purchase value of fixed assets - accumulated depreciation.

Fixed assets do not need to consider the residual value when calculating the net book value, but need to be considered when calculating depreciation.

2. Book balance The purchase value of fixed assets.

In the case of historical cost calculation, the book balance of fixed assets is the value of the enterprise at the time of purchase.

3. Book value The purchase value of fixed assets - accumulated depreciation - impairment provision.

When calculating depreciation and impairment of fixed assets, the issue of residual value needs to be considered.

1. The concept is different: the book balance refers to the recorded value of assets. Book value is the realizable value of an asset.

Net book value is the net amount of the original value of the asset minus depreciation or amortization. In the case of assets, depreciation or amortization is inevitable, while impairment is a special case;

2. Different scales: in terms of assets, generally speaking, the book balance is the largest, followed by the net book value, and the book value is the lowest;

3. The calculation formula is different: for fixed assets: book balance = original book price of fixed assets.

Net book value = Original value of fixed assets - Accrued depreciation. Book Value = Original Value of Fixed Assets - Accumulated Depreciation Accrued - Impairment Provision Accrued. The fixed model Lu Tourism does not need to consider the residual value when calculating the net book value, but needs to consider it when calculating depreciation.

For intangible assets: Book balance = Original book value of the intangible asset. Net book value = original value of intangible assets - accrued amortization and write-off.

Book value = original price of intangible assets - accumulated amortization - provision for impairment.

The book balance refers to the actual remaining amount on the book of an account, and cannot be deducted from the provision of collateral related to the account (e.g., accumulated depreciation, accumulated amortization). Book balances refer to the amounts of the balances of each account. The amount that actually exists on the books, the original value in the accounting statements.

The difference between book value, book balance, net book value, and net book amount.

Book balance: refers to the summary of the balances of all detailed accounts of an accounting account (account), that is, the total account balance. For example, long-term equity investments accounted for by the equity method include detailed account balances such as costs, profit and loss adjustments, and other equity changes.

The book balance is also called the original book price, which is the balance that directly summarizes the balance without deducting depreciation, amortization and impairment provisions. Net book value: Generally for fixed assets, intangible assets and investment real estate measured in the cost model.

The net book value is equal to the book balance (original book price) minus the amount of accumulated depreciation and accumulated amortization, and it does not deduct impairment provisions. Book value: The balance after deducting the impairment allowance on the basis of the net book value, that is, the balance of the book balance minus its allowance account.

Allowance accounts generally refer to accumulated depreciation (amortization), asset impairment provisions, etc. Net book value = book balance - accumulated depreciation (amortization) book value = net book value - impairment provision.

2019 How does CPA accounting distinguish between book balance, net book value, and book value?

1. Book value, original value of assets, provision for impairment, accrued accumulated depreciation; Book value is the book balance minus depreciation minus impairment provision, which refers to the enterprise value reflected and measured in accordance with the principles and methods of accounting.

2. Book balance: the original book price of the asset; The book balance is the balance of the account itself, which refers to the actual book balance of an account, and can not deduct the allowance items related to the account (such as accumulated depreciation and accumulated amortization). It is the amount that actually exists on the books, and the original value on the accounting statement.

3. Net book value Depreciation value of assets Original value of assets Accumulated depreciation accrued. Net book value is the number of book balances minus depreciation.

Book value refers to the value on the book, which corresponds to the actual value, and the book balance refers to the balance on the book, for example, the accounts receivable is in short supply, the balance after the accounts receivable is the book balance, and the net book value refers to the depreciation after all depreciation is removed.

Book value refers to the production value of equipment on the books, and the book balance refers to the balance of cash on the books, and the net value of the books is the assets on the books minus the liabilities, which is the net value on the books.

Hello, Mr. Lin of the Accounting School will answer for you.

About the difference between book value, book balance, and net book value:

For fixed assets:

Book value Original value of fixed assets Provision for impairment Accrued accumulated depreciation;

Book Balance The original book value of the fixed asset;

Net book value Depreciation value of fixed assets Original value of fixed assets Accrued depreciation.

Feel free to ask my nickname to all the teachers in the Accounting School.

The book balance is the original book value of the asset, which does not deduct allowances such as impairment and depreciation, while the book value is deducted from allowances such as impairment and depreciation. For example, the book balance of a fixed asset = the original book value, and the book value = the original book value - accumulated depreciation - the impairment provision of the fixed asset.

You mean fixed assets, right?

Book Value Original Value of Fixed Assets Provision for Impairment of Fixed Assets Accumulated Depreciation Book Balance Original Value of Fixed Assets.

Net book value Net fixed assets Original value of fixed assets Accumulated depreciation The same is true for others.

According to the provisions of the current accounting system and the Accounting Standards for Business Enterprises - Fixed Assets, the impairment of fixed assets refers to the impairment of fixed assets.

The difference between the recoverable amount and its book value. The book value refers to the net amount of the book balance of an account minus the amount of the relevant allowance item;The book balance refers to the actual book balance of an account, without deducting the items that are used as allowances for the account (such as accumulated depreciation, impairment provisions for related assets, etc.).Net book value refers to the difference between the original value of fixed assets and accumulated depreciation. In addition, the Accounting Standards for Business Enterprises - Fixed Assets stipulate that the depreciation rate and depreciation amount of fixed assets for which provision for impairment has been made shall be recalculated according to the book value (not book balance) and remaining useful life of the fixed asset, but when the depreciation amount of fixed assets is adjusted due to the impairment provision for fixed assets, the accumulated depreciation that has been previously accrued shall not be adjusted.