Insolvency

What is realisable value?

In insolvency, an asset has two types of value – the official value and the realisable value. The official value is how much that asset is valued at in the company’s books; the realisable value is how much it could be sold for if it had to be offloaded quickly.

For example, a company car might have an official value of $10,000 but a realisable value of only $8,000.