Define: Carrying Amount

Carrying amount is the value of an asset or liability as it appears on a company’s balance sheet.

Carrying amount is calculated by subtracting accumulated depreciation or amortization from the original cost of an asset.

Carrying amount is important because it reflects the value of an asset or liability on a company’s financial statements.

Yes, carrying amount can change over time due to factors such as depreciation, amortization, impairment, or changes in fair value.

Carrying amount is the value of an asset or liability as it appears on a company’s balance sheet, while fair value is the estimated value of an asset or liability based on market conditions.

Carrying amount affects a company’s financial statements by impacting the value of assets, liabilities, and equity.

Yes, carrying amount can be negative if the accumulated depreciation or amortization exceeds the original cost of an asset.

Carrying amount can impact taxes by affecting the value of assets and liabilities that are used to calculate taxable income.

Carrying amount and book value are often used interchangeably to refer to the value of an asset or liability on a company’s balance sheet.