Net asset value (NAV) is a term that is used in Mutual funds. It is the current value of the assets held under the investment.
Let us say a mutual fund house has 100,000 units in the market at a face value of $10 then the MF house would have collected $1,000,000. This amount will be used to purchase shares. Here $10 is the face value or the initial NAV of the mutual fund.
After say 3 months, the value of the investments (shares and other Stock Market instruments) have increased and the net assets in the fund is $1,500,000 then the current NAV is $15. The Net asset value of the mutual fund has increased by $5 in the past 3 months.
Net asset value of the business means the firms total assets less its total liabilities.
Net realization value is the price a company can get on sale or dissposal of any asset from balance sheet.
under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate
The carrying value (or book, or, net value) of a long term asset equals cost minus accumulated depreciation.
Depreciation spreads the cost of a fixed asset over the useful life of that asset so a portion of that cost is recognized as an expense in each period that the asset is in service. The original cost, less the accumulated depreciation is the net book value of the asset. The net book value may not represent the actual market value of the asset. Depreciation is not concerned with the market value but rather the value of the contribution that the asset makes to the business.
Original cost less the accumulated depreciation
NAV Stands for Net Asset Value
The net book value of a depreciable asset is calculated by deducting the accumulated depreciation from the original cost of the asset. Accumulated depreciation is the total depreciation expense recorded over the life of the asset. This calculation allows for the determination of the asset's value at a specific point in time.
Net realization value is the price a company can get on sale or dissposal of any asset from balance sheet.
Gross Versus Net ValueFair market value is the price an asset would bring if it were sold on a voluntary basis, meaning neither buyer nor seller has an obligation to make the exchange. Gross fair market value is the fair market value of an asset before allowing for any liabilities such as loans, taxes or liens. Suppose a warehouse has a gross fair market value of $250,000. If the property is collateral for a $100,000 business loan, the net fair market value of the asset becomes $150,000.
under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate
An example of a net asset value would be a mutual fund.
The carrying value (or book, or, net value) of a long term asset equals cost minus accumulated depreciation.
Accountants use net relizable value in evaluation; as it is more prudent, it takes into account the depreciation of an asset. This gives a more realistic value and is a better measure of an asset.
nav is net asset value which has to valued on 31.03.2009
Assets increase over liabilities
Asset - Liability = Net Asset / Liability * Net Asset - When Asset is more than Liability * Net Liability - When Liability is more than Asset
Depreciation spreads the cost of a fixed asset over the useful life of that asset so a portion of that cost is recognized as an expense in each period that the asset is in service. The original cost, less the accumulated depreciation is the net book value of the asset. The net book value may not represent the actual market value of the asset. Depreciation is not concerned with the market value but rather the value of the contribution that the asset makes to the business.