Written-Down Value

The written down value, a.k.a. “book value,” a.k.a. “net book value,” is some accounting magic that happens on a company’s balance sheet. It takes the value of an asset, subtracting depreciation or amortization, leaving the asset’s “present worth” behind.

Example:

Whatever.com bought a huge new piece of equipment, one that gives its employees much-needed back-of-knee massages. Instead of marking down the value of that purchase in one sudden "written down" month and ignoring its value over the next 10 years of useful life, accountants write it out, considering the costs and benefits of the massage machine to the business over time. Usually, companies will try to sell an asset before it depreciates to zero.