Market value is another important indicator; however, new business value and market value are usually not equal. The market value depends on the supply and demand effects of the asset. <br>It is also important to understand that NBV is affected by the depreciation method used by the company. Depreciation is always accumulated and deducted from assets to obtain new business value. <br><br>Since the asset is still in good working condition and maintains its value, the value of the new business is usually significantly lower than the market value of the previous few years of the asset's useful life. The value of new business is very important to the company. It makes accounting records fairer and more accurate, and helps express a true approximation of the company's total value.
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