In
accounting,
book value is the value of an
asset according to its
balance sheet account balance. For assets, the value is based on the original cost of the asset less any
depreciation,
amortization or
impairment costs made against the asset. Traditionally, a company's book value is its total assets minus
intangible assets and liabilities. However, in practice, depending on the source of the calculation, book value may variably include
goodwill,
intangible assets, or both. The value inherent in its workforce, part of the
Intellectual capital of a company, is always ignored. When intangible assets and goodwill are explicitly excluded, the metric is often specified to be "tangible book value".