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Is the book value of debt equal to the market value of debt?

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Question ajoutée par Nitin Gupta, ACA , FP&A , Rockwell Automation
Date de publication: 2013/11/19
Khalid Noor
par Khalid Noor , Accounting Manager , FedEx

Not necessarily, market value may be lower or higher than the book value as market value is always exposed to fair valuations determined by market forces.

Praveen Jain
par Praveen Jain , Summer Internship , BOSCH Ltd.

As we know that in HISTORICAL CONCEPT we take all the assets on book value but in the case of Debt we we have to pay some interest over our debt which compensate the difference between market value and book value.

 

mukkur srinivasan varadhan
par mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice

not necessarily.Interest is also changing as per market conditions .Hence the value of debts.

 

suleman anjum
par suleman anjum , Accounts and Finance Executive , Paksolarcells Pvt. ltd

no not at all both situation and terms are opposit becauseBook value is the price paid for a particular asset. This price never changes so long as you own the asset. On the other hand, market value is the current price at which you can sell an asset.

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