Carrying Value


DEFINITION of 'Carrying Value'

An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance sheet. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset. For a company, carrying value is a company's total assets minus intangible assets and liabilities such as debt.

Also known as "book value".


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BREAKING DOWN 'Carrying Value'

This is different from market value, as it can be higher or lower depending on the circumstances, the asset in question and the accounting practices that affect them. In many cases, the carrying value of an asset and its market value will differ greatly. This is because, in accordance with accounting rules, the assets are held based on original costs. If a company holds land that was purchased 100 years ago, it holds it at the cost paid. Over time, however, this real estate has likely gained considerably in value.

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  3. Amortization

    1. The paying off of debt in regular installments over a period ...
  4. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  5. Asset

    1. A resource with economic value that an individual, corporation ...
  6. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
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  1. How do you write off impaired assets from the financial statement?

    An accountant writes off an impaired asset by decreasing the book value of that asset on the company's balance sheet from ... Read Full Answer >>
  2. How can I calculate the carrying value of a bond?

    The carrying value of a bond is the net amount between the bond’s face value and any unamortized premiums or minus any amortized ... Read Full Answer >>
  3. What are some ways a business owner can reduce unlimited liability?

    Fixed assets become impaired when there is a quick decrease in the value of a fixed asset below its original cost due to ... Read Full Answer >>
  4. What is the difference between carrying value and fair value?

    Carrying value and fair value are two different accounting measures used to determine the value of a company's assets and ... Read Full Answer >>
  5. What is the difference between carrying value and market value?

    The difference between carrying value and market value is that the carrying value of an asset is the original cost less the ... Read Full Answer >>
  6. What's the difference between book and market value?

    Book value is the price paid for a particular asset. This price never changes so long as you own the asset. On the other ... Read Full Answer >>

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