Definition

Net Book Value (NBV) is the value of an asset after subtracting accumulated depreciation from its original cost.

Key Points

• Appears on the balance sheet
• Used when calculating gain or loss on asset disposal
• Important for tax adjustment purposes
• Reflects carrying value for accounting purposes

Example

An asset purchased for AED 100,000 with AED 60,000 accumulated depreciation has a Net Book Value of AED 40,000.