The carrying amounts of individual investments are reviewed at each balance sheet date to assess whether the fair values have declined below the carrying amounts.
The carrying amount of other payables and accruals approximates to its fair value.
Net book value with proportional value adjustments
The carrying amount of other receivables, deposits and prepayments approximates to its fair value.
Book value per share declined 6% in the latest quarter, mostly because of a decline in the value of Berkshire's investments.
While the book-value calculation is a straightforward way to evaluate a decision, it does not work when you consider the time value of money.
Where an indication of impairment exists, the carrying amount of the goodwill is assessed and written down immediately to its recoverable amount.
Profits or losses on disposal of other investments, representing the difference between the net sales proceeds and the carrying amounts, are recognised in the profit and loss account as they arise.