Carrying Value

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What is a 'Carrying Value'

A carrying value is 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".

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.

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    Understand the difference between carrying value and market value. Learn when a company uses carrying value to value an asset ... Read Answer >>
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  3. How do you write off impaired assets from the financial statement?

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  4. What are the differences between amortization and impairment?

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  5. What is the difference between book value and carrying value

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