Carrying Value

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".

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.


Investment dictionary. . 2012.

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  • carrying value — noun : book value * * * carrying value noun (accounting) The value of an asset or liability in a company s books or balance sheet • • • Main Entry: ↑carry …   Useful english dictionary

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  • value — The utility of an object in satisfying, directly or indirectly, the needs or desires of human beings, called by economists value in use, or its worth consisting in the power of purchasing other objects, called value in exchange. Joint Highway… …   Black's law dictionary

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  • carrying amount — The balance sheet value of an asset or liability. For example, a fixed asset, such as a building, will be shown at the historical cost less the accumulated depreciation to date, using the historical cost convention. Under alternative accounting… …   Accounting dictionary

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