Net book value
The carrying amount of the right-of-use asset after accumulated depreciation.
Definition
Net book value (NBV) is the original cost of the right-of-use asset less accumulated depreciation to date. It represents the remaining carrying amount on the balance sheet.
Why it matters
The NBV of the ROU asset feeds into the ROU asset movement disclosure and the balance sheet. It must agree to the ROU asset note in the statutory accounts.
In AuditLease
AuditLease reports the NBV for each lease and in aggregate by asset class in the ROU asset movement note.
Related terms
Put this into practice with AuditLease
AuditLease handles IFRS 16 and FRS 102 lease calculations, statutory note generation, journal entries, and audit evidence — so your team spends less time on spreadsheets and more time on judgements.
This definition is for general information only and is not accounting or legal advice. Definitions are based on IFRS 16, FRS 102, and associated guidance published by the IFRS Foundation and the Financial Reporting Council. Users should refer to the applicable accounting standards and their professional advisers for judgement-specific matters.