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Sir,
In BPP text I read
Under Net book value we consider the
Non current assets net of depreciationIf it’s true then isn’t it net carrying value.
Also you mentioned one reservation in your lecture that the value of assets might be outdated (unless bought recently)
But if we are considering depreciation isn’t value up-to-date.Net book value and net carrying value both mean the same – i.e. the values in the SOFP.
The values in the SOFP (i.e. after depreciation) certainly do not ever represent the ‘true’ value of the asset. The purpose of depreciating is simply to spread the cost over the useful life. It is never intended to show the actual value of the asset.
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